AN ANALYSIS ON THE ANTECEDENTS OF YOUNG EMPLOYEES’ EARNING POTENTIAL IN SOUTH AFRICA

Abstract

Concerns surrounding the outcomes of young people in the labour market have become a global phenomenon. None more so has this been evident than in South Africa. While finding employment seems highly unlikely for most, circumstances surrounding the outcomes of those who are employed have likewise raised alarms. Understanding what contributes to decent employment in this regard holds important relevance not only in promoting the wellbeing of the cohort, but also advancing the knowledge on the requirements to utilise their local development potential. The purpose of the study was therefore to identify the antecedents of young South African employees’ earning potential. A quantitative approach and cross-sectional research design were employed, where secondary data collected through the most recent national labour market dynamics survey was used. The sample consisted of 27 493 young employees between the ages of 15 and 34 years. Descriptive statistics, cross-tabulations and a linear regression were utilised for the analysis. Results of the study showed the earnings potential of young South Africans to be intertwined with an array of aspects. In this regard, the remuneration prospects of young people depend on race, sector of employment and trade union membership. Outcomes were also highly gendered biased, while the impact of labour market inequalities including the lack of social capital and geographical characteristics likewise seems to affect their earnings ability. Recommendations in advancing the cohort’s labour market outcomes must, therefore, include enhanced public-private partnership formation through mandatory apprenticeship programmes. This must be supported by the relaxation of labour market regulations and a strategic focus that seeks to advance both soft and technical skills.