Digitization and unemployment in South Africa: Preparing the youth towards taking advantage of 4IR Humbulani Ndou Student Number:2011329 Students Email Address: 2011329@student.wits.ac.za Supervisor: Dr Jacques Totowa A research proposal submitted to the Faculty of Commerce, Law and Management, University of the Witwatersrand, in partial fulfilment of the requirements for the degree of Master of Business Administration. Johannesburg, 2023 mailto:2011329@student.wits.ac.za i ABSTRACT This study adopted a qualitative approach to assess the capabilities of South Africa to leverage the fourth industrial revolution (4IR) in addressing youth unemployment and the transformative impact of 4IR on the socio-economic landscape. Through a comprehensive exploration of youth employment dynamics, education systems, infrastructure challenges, and the overarching development trajectory, the study provides nuanced insights into the opportunities and challenges posed by the rapid technological advancements of the 4IR. The findings reveal a complex landscape, where concerns about job displacement coexist with the promise of new employment opportunities and enhanced productivity. In the realm of education, the study highlights the urgency of adapting South Africa's educational system to the demands of the 4IR. Outdated curricula and inadequate preparation for future jobs underscore the need for a comprehensive overhaul, including the integration of technology at all levels and the development of digital literacy programs from primary education onwards. The digital divide between urban and rural areas emerges as a critical issue, necessitating infrastructure upgrades and policies to ensure widespread internet accessibility, particularly in underserved regions. This study recommends a multifaceted approach to address these challenges. Initiatives encompass comprehensive education system reforms, prioritizing digital literacy, infrastructure development, and widespread internet accessibility. The promotion of entrepreneurship and youth development programs, strategic partnerships between educational institutions and the private sector, and regulatory measures adapting to the 4IR landscape are also proposed. Moreover, continuous skills development is recommended to align the workforce skills with the evolving demands of the job market. This study offers a roadmap for South Africa's policymakers, educators, and stakeholders to navigate the 4IR complexities, aiming to harness technological advancements while mitigating challenges and fostering a resilient, innovative, and inclusive future. ii DECLARATION I, Humbulani Ndou, declare that this research report is my own work except as indicated in the references and acknowledgements. It is submitted in partial fulfilment of the requirements for the degree of Master of Business Administration at the University of the Witwatersrand, Johannesburg. It has not been submitted before for any degree or examination in this or any other university. Name: Humbulani Ndou Student Number :2011329 Signature signed at the University of the Witwatersrand. Parktown Management Campus, Johannesburg, on the 29th day of February 2024. iii DEDICATION This research project is devoted to my cousin and guardian Captain Khathutshelo Daniel Nekhambele, who sacrificed much over the years to make today a reality. iv ACKNOWLEDGEMENTS This report would not have been possible without the support of many people. Firstly, I would like to thank my supervisor, Dr Jacques Totowa, for his advice, knowledge and guidance throughout this learning process. Your guidance and support gave me the strength to push through the research process and I will always be grateful. I would like to send my appreciation to the Wits Business School management, the academic staff, and the professional staff for the passion they have for knowledge sharing and for always being available to listen when challenges were encountered during the MBA journey. I would like to thank the former Head of School for the Wits School of Governance, Prof. Mzukisi Qobo, for the support and for encouraging me to register for the MBA. Thank Wits University, my employer, for affording me the opportunity to study through the provision of study time and financial support. Thank you to my wife, Keolebogile Margret Ndou, for allowing me to undertake these studies and for taking care our children Mulalo and Phophi in my absence. Thank you to Mrs. Lydia Luambo Mbedzi, my teacher and cousin, for being the light and making today possible. Finally, I would like to thank my study partners from the PDBA to the MBA for the good and tough times, laughs, sleepless nights, the lessons learned, and meaningful conversations we had during this journey. This journey would not have been as enjoyable without all of you. v TABLE OF CONTENTS ABSTRACT ................................................................................................................... i DECLARATION ........................................................................................................... ii DEDICATION .............................................................................................................. iii ACKNOWLEDGEMENTS .......................................................................................... iv LIST OF ACRONYMS AND LIST OF TABLES.......................................................ix CHAPTER 1. INTRODUCTION .......................................................... 1 1.1 RESEARCH PURPOSE ..................................................................................... 1 THIS STUDY AIMS TO ASSESS THE CAPABILITIES OF SOUTH AFRICA (SA) TO LEVERAGE THE FOURTH INDUSTRIAL REVOLUTION (4IR) IN ADDRESSING YOUTH UNEMPLOYMENT............................................................................... 1 1.2 BACKGROUND OF THE STUDY ....................................................................... 1 1.3 RESEARCH PROBLEM .................................................................................... 2 1.4 RESEARCH OBJECTIVES AND RESEARCH QUESTIONS ..................................... 3 RESEARCH OBJECTIVES:........................................................................................................................ 3 RESEARCH QUESTIONS. ......................................................................................................................... 3 1.5 RATIONALE .................................................................................................. 4 1.6 RESEARCH DELIMITATIONS........................................................................... 4 CHAPTER 2. LITERATURE REVIEW .............................................. 5 2.1 INTRODUCTION ............................................................................................. 5 2.2 EMPIRICAL REVIEW ...................................................................................... 5 2.2.1 SOUTH AFRICAN EDUCATION SYSTEM ................................................................................... 6 2.2.2 HOW OTHER COUNTRIES PREPARED THEIR YOUTH FOR DIGITIZATION................................. 7 2.2.3 LINKING ‘CHANGE’ DI GITIZATION TO PROFESSIONS.............................................................. 8 vi 2.3 IDENTIFICATION OF RESEARCH GAPS ............................................................ 9 2.4 THEORETICAL FRAMEWORK ......................................................................... 9 2.5 CONCEPTUAL FRAMEWORK........................................................................ 11 2.6 RATIONALE OF THEORIES ........................................................................... 13 2.7 CONCLUSION OF LITERATURE REVIEW ....................................................... 14 CHAPTER 3. RESEARCH METHODOLOGY ................................ 15 3.1 RESEARCH APPROACH ................................................................................ 15 3.2 RESEARCH PARADIGM ................................................................................ 15 3.3 RESEARCH DESIGN...................................................................................... 16 3.4 DATA COLLECTION METHODS ..................................................................... 16 3.5 POPULATION AND SAMPLE .......................................................................... 16 3.6 SAMPLING DESIGN ...................................................................................... 17 3.7 THE RESEARCH INSTRUMENTS AND DATA COLLECTION PROCEDURES ......... 18 3.8 DATA ANALYSES ........................................................................................ 18 3.9 ETHICAL CONSIDERATIONS ......................................................................... 18 3.9.1 INFORMED CONSENT .............................................................................................................19 3.9.2 CONFIDENTIALITY AND ANONYMITY ...................................................................................19 3.9.3 DATA MANAGEMENT ............................................................................................................19 3.10 VALIDITY AND RELIABILITY ....................................................................... 19 CHAPTER 4. - ANALYSIS AND INTERPRETATION OF FINDINGS 21 4.1 INTRODUCTION ........................................................................................... 21 4.2 PERCEPTIONS, SIGNIFICATIONS, AND INTERPRETATIONS OF THE FOURTH INDUSTRIAL REVOLUTION (4IR)................................................................. 21 4.3 THE 4IR AS A HOLISTIC TRANSFORMATION IN THE APPROACH TO TECHNOLOGY ............................................................................................. 22 vii 4.4 CATEGORIES OF 4IR: DIGITISATION, AUTOMATION, AI, AND VIRTUAL REALITIES ................................................................................................... 23 4.5 THE READINESS OF SOUTH AFRICAN YOUTH TO EMBRACE 4IR EMPLOYMENT OPPORTUNITIES .......................................................................................... 24 4.5.1 YOUTH KNOWLEDGE, ATTITUDES, AND AGILITY TOWARDS TECHNOLOGY ........................24 4.6 THE EFFICACY OF THE SOUTH AFRICAN EDUCATION SYSTEM IN EQUIPPING YOUTH FOR 4IR EMPLOYMENT OPPORTUNITIES ........................................ 26 4.6.1 DISPARITIES IN EXPOSURE TO 4IR: THE RURAL AND URBAN DICHOTOMY.........................26 4.6.2 MISALIGNMENT BETWEEN EDUCATIONAL CURRICULUM AND I NDUSTRY DEMANDS .........28 4.6.3 LACK OF INTEGRATION BETWEEN PRE-MATRIC AND POST-MATRIC EDUCATIONAL SYSTEMS 30 4.6.4 EDUCATIONAL AND SECTOR SPECIFIC 4IR RELATED AWARENESS ...................................31 4.7 TRAINING NEEDS AND CAPACITIES FOR EMPOWERING YOUTH IN DIGITIZATION ................................................................................................................... 32 4.7.1 DIGITISATION AND SKILLS DISPARITIES ...............................................................................32 4.7.2 YOUTH CHOICES AND DIGITAL SKILLS DEVELOPMENT ........................................................34 4.7.3 MENTORSHIP AND CAPACITY BUILDING ..............................................................................35 4.7.4 SHORTAGE OF SKILLS AND DIGITAL JOB OPPORTUNITIES ....................................................36 4.8 THE EFFECTS OF DIGITISATION ON YOUTH EMPLOYMENT AND UNEMPLOYMENT ........................................................................................ 37 4.8.1 DIGITISATION AND JOB CREATION .......................................................................................38 4.8.2 EFFECT OF DIGITISATION ON PHASI NG OUT OF TRADITIONAL JOBS ....................................40 4.9 THE ROLE OF GOVERNMENT IN CREATING AN ENABLING ENVIRONMENT TO PROMOTE DIGITISATION EMPLOYMENT OPPORTUNITIES FOR YOUTH . .......... 41 4.9.1 INFRASTRUCTURE UPGRADES AND INTERNET ACCESS IN RURAL AND TOWNSHIP SCHOOLS 42 4.9.2 RECONCEPTUALIZATION OF BASIC AND HIGHER EDUCATIONAL SYSTEM ...........................43 4.9.3 ESTABLISHMENT OF YOUTH DEVELOPMENT PROGRAMMES AND ENTREPRENEURSHIP ......46 4.9.4 STRATEGIC PARTNERSHIPS, MENTORSHIPS, AND NETWORKS..............................................48 4.9.5 GOVERNMENT REGULATORY MEASURES AND LEGISLATION ..............................................49 4.9.6 SKILLS DEVELOPMENT ..........................................................................................................50 4.10 CONCLUSION .............................................................................................. 51 viii CHAPTER 5. - CONCLUSION AND RECOMMENDATIONS ...... 53 5.1 INTRODUCTION ........................................................................................... 53 5.2 SUMMARY OF FINDINGS .............................................................................. 53 5.2.1 PERCEPTIONS, SIGNIFICATIONS, AND INTERPRETATIONS OF THE FOURTH INDUSTRIAL REVOLUTION (4IR). ............................................................................................................................................54 5.2.2 READINESS OF SOUTH AFRICAN YOUTH TO EMBRACE FOURTH INDUSTRIAL REVOLUTION EMPLOYMENT OPPORTUNITIES ..........................................................................................................................54 5.2.3 SKILLS AND CAPACITIES TO PREPARE YOUTH FOR 4IR .......................................................55 5.2.4 POTENTIAL EFFECTS OF DIGITISATION ON YOUTH UNEMPLOYMENT REDUCTION ..............55 5.2.5 THE ROLE OF GOVERNMENT IN CREATING AN ENABLING ENVIRONMENT FOR YOUTH TO EMBRACE 4IR OPPORTUNITIES ..........................................................................................................................56 5.3 RECOMMENDATIONS .................................................................................. 56 5.3.1 TARGETED INTERVENTI ONS IN THE EDUCATION SYSTEM ....................................................56 5.3.2 MENTORSHIP AND ENTREPRENEURSHIP PROGRAMS ............................................................58 5.3.3 COMPREHENSIVE 4IR AWARENESS PROGRAMS ...................................................................58 5.3.4 INDUSTRY-RELEVANT SKILLS DEVELOPMENT .....................................................................59 5.3.5 MITIGATING STRATEGIES FOR JOB DISPLACEMENT DUE TO DIGITISATION .........................59 5.3.6 STRATEGIES FOR ENHANCING INDUSTRIAL EFFICIENCY THROUGH DIGITISATION .............59 5.3.7 PROMOTION OF RESEARCH AND DEVELOPMENT (R&D) IN TECHNOLOGY .........................60 5.3.8 PROMOTING SOCIAL AND ECONOMIC INCLUSIVITY .............................................................60 5.4. CONCLUSION ................................................................................................... 61 REFERENCES ......................................................................................... 1 APPENDIX (A) Interview questions ...........................................................................14 14APPENDIX (B) Consent Form ............................................................................... 17 APPENDIX (C) Participation Information Sheet .................................................... 18 APPENDIX (D) Ethics Approval Letter ................................................................... 20 ix LIST OF ACRONYMS AI Artificial Intelligence 4IR Fourth industrial revolution IT Information system POPIA Protection of Personal Information Act Stats SA Statistics South Africa SA South Africa DHET Department of Higher Education and Training MBA Master of Business Administration PDBA Post Graduate Diploma in Business Administration LIST OF TABLES Table 1: Sample of participants and experience levels 1 CHAPTER 1. INTRODUCTION 1.1 Research purpose. This study aims to assess the capabilities of South Africa (SA) to leverage the Fourth Industrial Revolution (4IR) in addressing youth unemployment. 1.2 Background of the study Digital technologies are perceived by some sections of society as threats to both job creation and the viability of current employment (Frey & Osborne, 2013), and it is worth noting that technological innovation has traditionally enhanced productivity, resulted in continuous gains in living standards, and created more employment than it eradicated (Blanchard, 1998). However, this progress has occasionally been hindered, notably during the transition period, by several difficulties, particularly in employment markets. (SAOUDI, 2021) Digitization is anticipated to have varying effects on employment depending on the productive and institutional context in which it occurs: labour market structures, legislation, industrial relations, and macroeconomic situations (Evangelista et al.,2014) ;(Calvino et al.,2018); (Guerrieri & Bentivegna, 2012). However, some believe that, as with earlier technical advancements, digitation will increase labour demand in certain industries and provide fresh employment possibilities that did not previously exist, while raising incomes and living conditions (Blanchard, 1998) ; (Melainie et al.,2016). Over time, technology has had a significant impact on the economy by utilising information and communication technologies to cover an increasing range of economic activities and create new opportunities for socioeconomic development, disintegrating some businesses and jobs while reshaping and establishing others. (Autor & Salomons, 2017); (Kravchenko et al.,2019). 2 In developed countries, there are considerable possibilities of some employment sectors becoming totally or partially digitised, especially those performed by low skilled individuals, especially within the manufacturing sector (Frey & Osborne, 2013) ; (Eurofound, 2024). The concern is that the transition will continue, resulting in some professions disappearing for the benefit of technology, and may also affect workplace relationships (Eurofound, 2024). Digitization has already reshaped the workplace, as evidenced by how the workforce currently embraces collaboration and fosters an open and holistic culture. Technology already has a significant impact by providing opportunities for remote and distributed work, promoting flexibility and collaboration among departments (Kramer, 2023). Most young people globally are underemployed or jobless, while organisations are unable to fill vacant positions. This is a dilemma that emanates from the widening misalignment between youth skills and marketplace demands (Deloitte , 2018). If not solved, it will certainly worsen during the Fourth Industrial Revolution (4IR) (Deloitte , 2018).This research posits that youth in developing countries, and specifically in SA, should prepare themselves to take advantage of employment opportunities that accrue through digitization. 1.3 Research problem. According to the first quarter 2022 labour force survey, youth unemployment in South Africa is at 63.9% for the demographic group between the ages of 15 and 24 (Stats SA, 2022), making it higher than the South African national unemployment rate of 32.7%. Although the unemployment rate is lower among graduates within the youth segment, the phenomenon of jobless graduates has become an additional and increasing challenge for society (Stats SA, 2022).Youth unemployment is a problem because the youth are the future of a country, and keeping them idle is a major risk for the nation (Autor & Salomons, 2017). Frustrated youth may feel excluded and disenfranchised, which can result in increased rates of crime and violence, adolescent pregnancies, youth dependency, substance abuse, and sexual inequality (Statista, 2024). 3 South Africa's high youth unemployment rate is linked to several social problems that have a significant impact on people's lives, communities, and the entire nation (Statista, 2024). Economic marginalisation, in which young people are unable to access opportunities for stable employment and income generation, is one of the major societal issues connected to youth unemployment in South Africa. In marginalised communities especially, this can exacerbate cycles of poverty and inequality (Statista, 2024) Among the workable solutions to this problem, it has been suggested that digitization of the economy could assist with alleviating youth unemployment through a proactive strategy based on the prediction of change and the delivery of skills needed for individuals and businesses to prosper in the digital era. (Deloitte , 2018); (DBSA, 2024) . Digitisation will tackle youth unemployment by providing the South African youth with training in digital skills, allowing them to take charge of their lives and create their own jobs, as opposed to alternative solutions that are more dependent on governments for job development. (OECD, 2021) 1.4 Research objectives and research questions. Research objectives: • To identify the technological skills and training needs that would prepare the youth to take advantage of digitization. • To assess the readiness of South African youth to maximise the employment opportunities that could arise through the digitization of the economy. • Investigate the potential benefits of digitalization in South Africa and the important role that it may play in reducing unemployment. Research questions. • Which technological skills and training can be identified and invested in to cap the gap in youth unemployment? • How ready are the South African youth to take advantage of new jobs that will arise through the digitization of the economy? 4 • What potential benefits would digitalization have in South Africa, and what role will it play in reducing unemployment? 1.5 Rationale This study proposes the use of digitization as a tool to pull the youth out of unemployment. This research aims to improve our knowledge of the way the technological revolution impacts the nature of the economy and employment. This research shall enhance the progressive governance process by rebuilding and restructuring the economic policy frameworks, ensuring that the digital revolution is one of growth and development for everyone. 1.6 Research delimitations and justification This research is restricted to the relationship between youth unemployment and the digitisation of the economy. This study's contribution is substantial, relevant, and useful for the efficient and effective application of this research to the problem of youth unemployment in South Africa, particularly in industries that employ many unskilled and semi-skilled labour forces. The study will also give further information on the impact of innovative technologies and innovation on youth employment in South Africa. 5 CHAPTER 2. LITERATURE REVIEW 2.1 Introduction The global unemployment population, particularly among the youth, is an acute concern because of the digital economy, its potential capacity, and losses (Vivarelli, 2007). The digital economy has a huge influence on youth employment because it is built on global information and communication networks that connect all players (producers, consumers, partners, customers, young people, and adults) into a single economic mechanism (Nkosi G. , 2023). The digital economy, brought about by the 4IR, promotes national competitiveness and security, produces new opportunities for human capital development, and fosters innovation and creative industries (Vivarelli, 2007). 2.2 Empirical review Research conducted on the South African labour market following the first democratic election focused on what happened to young people (Bhorat & Leibbrandt, 1999), by conducting a two-step Heckprobit regression analysis and probit multiple regression analysis on the probability of employment among black persons using OHS 1995 data (Bhorat & Leibbrandt, 1999). Upon investigation of differences in household characteristics and educational attainment, the research shows that many young blacks in the population group in the age category of 16 to 25 had the least risk of participating in economic activities (National Treasury, 2011). The impact of technological advancements on youth unemployment is not always straightforward, as it affects industries and labour markets all throughout the world, accelerating economic development and cultural change. (Alfred et al.,2023). The introduction of innovative technology may lead to job losses in traditional industries, such as manufacturing and services, as well as the disappearance of certain types of jobs (Nkosi G. , 2023). The “skill-biased” shift in employment may mean that the younger, inexperienced workers may not be able to compete with their older and more experienced counterparts (Vivarelli, 2007). Therefore, while technological advancements can have a 6 favourable impact on youth unemployment, it is incredibly significant to consider the other potential effects of technological innovations. A 1984 British workplace industrial relations survey found that technological innovation adoption and employment are negatively correlated (Machin & Van Reenen, 1998). Furthermore, utilising microdata from 16 German industries, discovered comparable results and found that innovation in technology contributed significantly to job losses in the 1980s in Germany (Zimmermann, 1991). 2.2.1 South African education system The Basic Education Department in SA had a well-planned strategy to execute the e- education and e-learning education policy, but it was not implemented because of the department’s incompetence and lack of experience in training teachers (Vandeyar, 2015). For students to be able to adapt successfully in the twenty-first century and the 4IR, the education system in SA must provide them with computer skills (Mihaescu & Andron, 2019). According to Retief (2019, most learners produced by the South African education system are not effectively and productively equipped to take advantage of employment brought about by the 4IR. The South African higher education system is graduating students who are unable to compete in the digital economy in terms of jobs that require computer literacy (Retief, 2019). Most of the schools in the country are characterised by limited or, in some cases, non-existent of computer laboratories; and the inability to execute fundamental computer activities, particularly in historically disadvantaged rural areas (De Angelis et al., 2019);(Retief, 2019). The lack of technological education in schools is partly related to the fact that the economy still heavily reliant on manual labour, as it is in several developing countries (McNully, 2018).The South African education system is graduating students who are unable to compete in the digital economy in terms of jobs which require computer literacy (Retief, 2019). The lack of technological education in schools is partly related to the economy still heavily reliant on manual labour, as it is in several developing countries (McNully, 2018). 7 Therefore, South African schools need to prepare students for innovative technologies for them to succeed in the digital economy, as well as recognise the way they may develop new and relevant skills that they can use to solve complex issues with innovation and collectively in accordance with 4IR demands (De Angelis et al., 2019). 2.2.2 How other countries prepared their youth for Digitisation. The case study done in Indonesia on youth preparedness for transformation to a digital economy highlighted the possible effects of digitization that constituted severe labour market problems (Ezell, 2021). The study recommended that for the youth to participate satisfactorily in the international digital economy, they need to acquire the appropriate digital capabilities and training in order to succeed in the world of the digital economy (Ezell, 2021).It further stated that the expectation from individual employees is to equip themselves with enough technological skills for them to be ready to contribute value to such an economy (Ezell, 2021). Furthermore, the demand for technological expertise, emotional and social competencies, and greater intellectual capacity associated with the digital revolution is expected to increase dramatically by 2030 (McKinsey & Company , 2018). The successful method for the adaptation of a progressively technological advancements is dependent on the training of upcoming generations of talents (Frankiewicz & Chamorro-Premuzic, 2020). Making sure that most of the youth possess the necessary skills for an increasingly technological and interconnected globe is critical for promoting equitable employment opportunities and spurring creativity, efficiency, and economic expansion (OECD, 2016) Though Romania improved slightly in all the classifications examined by the Digital Economy and Society Index (DESI), its position in the rankings remained steady since its overall growth was modest. Romania ranks first in the connection factor, owing to the widespread accessibility of reliable and speedy fixed-line internet connections (DESI, 2019).Yet, Romania's economic digitalization is behind, with over fifty percent of Romanians hardly accessed internet access and a fraction of a third possessing basic computer abilities. 8 2.2.3 Linking ‘change’ digitization to professions Digitization has emerged as a transformative force across various sectors, reshaping professions and redefining the nature of work (Brynjolfsson & McAfee, 2011). The advent of digital technologies has not only introduced new tools and methodologies but has also led to the creation of entirely new job roles while altering existing ones (Topol, 2019). From the integration of artificial intelligence in healthcare to the rise of fintech in the financial sector, the impact of digitization is pervasive and profound (Gomber, Koch, & Siering, 2017). The essence of contemporary technical progress is defined in terms of the extent to which it impacts the need for specific labour groups, for specific jobs. "Profession" refers to a disciplined group of individuals who adhere to ethical standards and possess specialised knowledge and skills, acquired through extensive education and practical experience, to serve the public or specific clientele. (Sullivan & Rosin, 2008). Technological development invariably causes economic adjustments, which manifest themselves in the labour market as work structural reorganisation. Job characteristics differ, where some require advanced qualifications, others necessitate a low level of worker competence; some relate to high pay, while others are associated with low pay; and some have appealing work environments, while others have unpleasant working circumstances (Frankiewicz & Chamorro-Premuzic, 2020) Naturally, the exact nature of the consequences of advancements in technology on workforce structure varies over time. Research in the early 1990s concentrated on the impact of the personal computing renaissance and the dissemination of technological advancements, which influenced the need for a specific skill set. The most basic version identified two types of staff members: unqualified and bright-skilled (Machin & Van Reenen, 1998). This was related to disparities in the job market. In the meantime, the largest movements in favour of highly skilled individuals have been observed in the organisations and industries most impacted by automation and digitization (Petit, 1993) . However, even among workers from the same qualification group, the scope of professional obligations might vary substantially (Autor et al., 1998). 9 The greatest emphasis was directed to Frey and Osborne (2013) who forecasted alterations to the profession composition among the American work force population. Their general assessment was extremely judgemental, in the coming 10 to 20 years an extensive spectrum of overall professions will find themselves facing complete automation, which constitutes over forty percent (47%) of the professions in the US (Frey & Osborne, 2013). Given that the duties executed within these professions are not currently expressed using language acquisition, technological displacement compromises a lot more than those professions within which automation comes across technical fields (Schwab C. , 2016). 2.3 Identification of research gaps The population's employment, particularly among its youth, is becoming a major concern because of the digital economy, its potential capacity, and losses. The digital economy has a huge influence on youth employment because it is built on global information and communication networks that connect all players (producers, consumers, partners, customers, young people, and adults) into a single economic mechanism (Svetlana & Tetiana, 2019). The digital economy, because of the 4IR, promotes national competitiveness and security, produces new chances for human capital development, and fosters innovation and creative industries (Odegov & Pavlova, 2018). Before studying the influence of innovative technologies and innovations on unemployed South African youth, it is important to highlight South Africa's demographic and unemployment tendencies. 2.4 Theoretical Framework Most previous research has focused on the hurdles that technology adoption creates (Parente & Prescott, 1994); (Leung & Tse, 2001); (Greenwood & Yorokoglu, 1997) and all supported the idea that there are obstacles that come with the adoption of technology. There is evidence of delays in the adoption and distribution of innovative technologies at 10 the empirical level, and estimate a 45-year gap before a new advanced technology is developed and fully adopted throughout countries (Comin & Hobijn, 2010); (Leung & Tse, 2001). However, current innovation-alarmist statements indicate that most of these economists are aware of the existence of such relationships and continue to employ disagreements that have been demonstrated by economic theory two centuries before the start of the eighteenth century (National Treasury, 2011); (Greenwood & Yorokoglu, 1997).In fact, traditional economists conveyed their primary philosophical concepts regarding persistent joblessness resulting from digitization and automation (Vivarelli, 2007). Economists throughout subsequent eras were more inclined to clarify, refine, and codify their beliefs than to deepen or change them (Parente & Prescott, 1994). According to Ricardo (2001) "O Machinery" in the most recent version of the fundamentals of political economics. The findings demonstrated inside the confines of the conventional school are still applicable. Ricardo sparked debate among orthodox economists whenever he introduced an additional part in the same publication. Classical economists N. Senior, J. McCulloch, J.B. Say, and J. S. Mill (2017) were among many he provoked, who responded angrily to Ricardo's assumption that the implementation of automation would bring about a long-term drop in labour demand (Ricardo, 2001). Secondly, the investment incentive is that greater productivity means higher revenue and greater competitiveness for organisations that engage in digitization and automation (Wicksell, 1961). Employees who have kept their jobs should see their wages rise as a result, and because their higher incomes translate into higher demand for services and products, supplementary employment opportunities are generated to meet the new demand. Most of the above-mentioned marketplace compensating techniques explain the possible consequences of technological advances or modifications to manufacturing methods. Traditional economists, on the other hand, have not overlooked the potential implications of industry innovation that relate to the emergence of fresh kinds of services and goods into the marketplace, and such discoveries need a large amount of work; they should result in an expansion as opposed to a decrease in general job opportunities (Marx, 1960). Marx 11 (1960) also highlighted the “friendly” nature of product innovations. A study has established that the possibility of an everlasting drop in overall employment because of innovative technologies was never realised and that, given this, we should at the very least reject the current techno-alarmists' catastrophic predictions (Mokyr et al., 2015). According to Acemoglu & Zilibotti (2001), the percentage of people working in the middle class has decreased significantly in developed economies. Such hollowing is connected to a decrease in job opportunities in regular jobs, which are centred on a limited set of tasks that are capable of being done by completing a well-defined procedure and process, Because these jobs are regular, they are ideal candidates for automation (Autor & Salomons, 2017). The fragmentation of the job market has stimulated discussions around regulatory solutions designed to assist workers who have been affected by technological advancements (Acemoglu & Zilibotti, 2001). 2.5 Conceptual Framework Technological development can cause an increase in youth unemployment levels not just by reducing the number of people required by job labour markets, but also by complicating and slowing the practice of pairing employees with employment (Schumpeter, 2003).To resolve the inequalities between the compositions of demand for labour and the labour market; occupational, geographical, and interfirm reallocation of labour becomes essential. According to Schumpeter (2003), some professions grow redundant, while new ones develop; innovations in technology raise the bar for workers' training and abilities; the workforce must relocate from areas where demand is low to areas where demand is high; non-innovative firms begin layoffs, whereas innovative businesses create new job opportunities, so job opportunities begin to drift from non- innovative organisations to those with advanced digitization and automation. The most significant issue arises if it goes beyond the bounds of regular unemployment caused by friction; if it is found to be accurate, how significantly; how well it is resolved over time; and by what means is the velocity. Feldmann (2013) utilised information from 21 industrialised nations in the period 1985 to 2009, to demonstrate how digitization and 12 automation create a transient increase in joblessness within the initial three years of execution, but thereafter it recovers to its original, reduced level. It is crucial to highlight that such a temporary rise in redundancy can occur even when innovation in technology provides a stimulus for a longer-term increase in labour demand (Feldmann, 2013). Many variables interact in many ways. Many factors are examined that are related to the general rise in youth unemployment, which is of greater importance and might endure further in any of the following hypothetical circumstances (Journal Economics 5, 2019): (a) The greater the much-needed reorganisation of employment, which means, the more rapidly, more deeply, and greater the technical improvements that provide it an additional boost. (b) The greater disparity among the expectations enforced by old and new innovations on the level of quality of workforce human capital. (c) The greater flexibility of the job market interferes with and delays the technique of reorganisation. Furthermore, assuming that we are not speaking about isolated disbelief but an instance in which the momentum of advancement in technology continuously surpasses the measure of adaptation required from organisations and staff members, unemployment due to innovation and digitization may be discovered not solely in the immediate future, but additionally in the years to come. According to Mortensen & Pissarides (1998), In cases where the subsequent impact is stronger than the former, the implementation of innovative technology will result in a rise in the "unnatural" percentage of unemployed. Nevertheless, this outcome cannot be considered predetermined. They further stated that; evolution in technology can occur in several forms: it may need the abolition of current occupations, or it may just demand their rehabilitation (Avdeeva, et al., 2019) Professionals in the previous instance learned to cope with the demands of innovative technology, upgrading and refilling their knowledge and abilities, while continuing in their prior occupations (Mortensen & Pissarides, 1998). 13 Technological innovation was justification for the consistently high rate of unemployed people in the United States economy for some time following the Great Recession (Brynjolfsson & McAfee, 2011). Nevertheless, given that unemployment within the United States has dipped less than 5%, technological advances played no part (Spitz- Oener A. , 2006). According to research by Spitz-Oener (2006), this decrease was 99% attributed to an overall decrease in everyday tasks executed by personnel inside existing professions and only 1% because of the elimination of entirely standard jobs. However, as previously stated, this type of advancement in technology is more probable to be linked to employment expansion rather than contraction. Most pessimistic estimates depend on categorising workers within two categories: lower and higher-skilled. Automation pushes out those who are unqualified to do dense-skilled tasks (Spitz-Oener A. , 2006). The split of employees into two polar groups, on the other hand, is only a standard method for simplifying the study (Auguiar et al., 2017). There are several gradations based on the quality of work. Absolutely nothing is unattainable given that, assuming circumstances, staff members on the bottom of an occupational ladder can move upward one level: employees that occupied this position previously also moved up a single position and continuing all through up to the top (Auguiar et al., 2017). Auguiar et al. (2017) shown that throughout the United States the labour market outlines, especially in every age group, changed downwards following the impact of digitization and automation, but the most significant changes are amongst young males’ population segment aged between 21 and 30 who possesses only basic education where job opportunities plummeted by10% throughout 2000 and 2015. 2.6 Rationale of theories At the end of the eighteenth century, economists and politicians have been concerned about advancement in technology and the consensus that it is responsible for the creation and drive of significant joblessness. Many instances that demonstrate the devastating impacts of such fear may be found in past times, including the renowned Luddite revolt in the United Kingdom, which is discussed in works by (Cohen, 1995) and (Petit, 1993). The link between advances in technology and joblessness, on the other hand, is certainly 14 not a historical one, and several recent developments to economic theories have attempted to investigate this relationship in a variety of ways. The present worth of new jobs is reduced because of creative destruction. Soon following the shortage of jobs, agents offer fewer jobs’ opportunities as they expect a decline in the profits. When there are fewer new employment opportunities available, existing ones become more valued. Moreover, quicker technical progress delays their extinction by lowering the opportunity cost of older couplings. Existing occupations are thus "insulated", (Caballero R. , 1993). The level of employment increases as the pace of job destruction decreases. This study examines and assesses whether South African youth are equipped to capitalize on the career prospects presented by digitization and 4IR. Furthermore, researching potential probable training requirements that SA might identify to close the skills gap to address the problem of youth unemployment. 2.7 Conclusion of Literature Review In conclusion, the jobs created by changes in technology should play a significant role in reducing the South African youth unemployment problem, as clearly demonstrated in the literature study, particularly in the South African setting. The preparedness of South African youth to take advantage of these opportunities has also been thoroughly investigated. The literature study also investigated the ability of South African education in training and providing South Africans with technology skills to enable them to participate in the digital economy, as well as how other nations prepared their young for 4IR. The present investigation will determine how prepared and what training is needed to address this problem. 15 CHAPTER 3. RESEARCH METHODOLOGY This chapter investigated all aspects of the research methodology which were adhered to in achieving the objectives of this research study. 3.1 Research approach In this research study, a qualitative research approach was used to evaluate how ready are the South African youth to take advantage of the digitization of economy. The method of qualitative research entailed gathering non-numerical data through interviews to analyse a group of people's behaviour, attitudes, and observations (Bhandari, 2023). This study endeavoured to understand what digitization means to the current south African problem of unemployment and considering digitization as possible solution to the problem, the qualitative approach allowed me to review and gain an in depth understanding of the topic. 3.2 Research paradigm The research paradigm provides advice about how scholars could position their study inside the framework and the reason required for framework selection (Proofed, 2022).. It is a theoretical framework that specifies the patterns of beliefs and in-depth understanding of the theories and practices in which the study functions (Proofed, 2022). Given the nature of undertaken study, the constructivism paradigm was used to analyse and comprehend the readiness of South African youth to take advantage of work prospects brought about by the digitalization economy. Constructivism was chosen as it is based on the belief that knowledge is constructed rather than discovered, meaning that individuals construct their own understanding and knowledge of the world through experiences and reflecting on those experiences which was what this study required (Adom et al., 2016). 16 3.3 Research design In this research study a structured interview approach was utilised, consisting of a sequence of pre-defined questions that all participants answered in precisely the same sequence. Interviews were an important research design method for qualitative research because they provided in-depth, flexible, and extensively detailed data. They were especially useful for delving into such difficult subjects, gathering unique and subjective views, and comprehending the social and cultural backgrounds of participants' experiences. Interviews provided me with a complete and nuanced perspective of the study problem by allowing for open-ended questions and participatory discourse. 3.4 Data collection methods These processes include gathering, analysing, and evaluating data on qualities from populations using well-organized techniques that offer answers to an array of research problems, testing of theories, and outcome evaluation (Debois, 2022).The data collection was conducted through interviews with Human Resource specialists, ICT senior managers and underemployed youth and the process was carried through online Microsoft teams interviews. It was significant that all three categories of participants be considered for the study: human resources specialists, who oversee bringing in talent into the organisations, ICT specialists, who are at the forefront of the digitisation process and underemployed graduates, who are the focus of this study. 3.5 Population and sample The purpose of population sampling is to collect a fair number of individuals or populations that may be examined to reach a conclusion for research, and it is done at random from a broader population (Ben-Shlomo et al., 2013). in the case of this study as supported by the literature review in how the South African youth can take advantage of job opportunities presented through digitization of the economy. The sample was divided 17 into three segments, four Human resources specialists, five Senior ICT personnel and three underemployed youth as shown below: Table 1: Sample of participants and experience levels Participants no Role Years of experience Participants segment Participant 1 Head of technology +10 years ICT specialist Participant 2 Human resources Senior officer +20 years Human resources specialist Participant 3 Human resources Senior lecturer +10 years Human resources specialist Participant 4 ICT Manager-Contracts +15 years ICT specialist Participant 5 Senior business partner +15 years Human resources specialist Participant 6 Research assistant +2 years Underemployed graduate Participant 7 Data architect and Developer +10 years ICT specialist Participant 8 Operations and HR manager +20 years Human resources specialist Participant 9 Administrative assistant +6 years Underemployed graduate Participant 10 SAPS analyst +0 years ICT specialist Participant 11 ICT Manager +10 years ICT specialist Participant 12 Post doctoral fellow +2 years Underemployed graduate 3.6 Sampling design In this study a purposeful sampling was utilised, which is a commonly used approach for qualitative studies (Ben-Shlomo et al., 2013). The targeted population were the Human resources specialists, Senior ICT personnel and unemployed youth and the sampled population was adequate to provide insightful data which supported the research study. 18 3.7 The research instruments and data collection procedures In the past few decades, the utilization of the sorts of interviews has become the most popular approach of gathering information for study results throughout a wide range of areas, and this pattern is projected to continue (Aaker et al., 1995). The design of the interviews was as follows: o The interview questions were unbiased and interesting and stimulated the participants to complete the interviews. o The interview questions were applicable to the research study and gave the participants the opportunity to express themselves fully. 3.8 Data analyses The data was collected through semi structured interviews which were conducted through MS teams systems. The data was transcript into word documents before it was analysed. Thematic analysis method was used in analysing these data where codes and themes were developed. The data was analysed manually using Microsoft excel in developing themes which were used in establishing findings and formulating results. 3.9 Ethical considerations As defined by Bhandari (2021), research ethical principles are a set of standards that guide study designs and approaches. When acquiring information from members of the general population, researchers and scientists are required to follow a particular standard of behaviour. Research done in academic and corporate contexts must always comply with ethical research norms (Bhandari, 2023). The interviews were performed under well- defined ethical principles that were tailored to present ethos, values, requirements, and expectations of all the stakeholders. 19 3.9.1 Informed consent This process is a core cornerstone of ethical research practice. Its purpose is for individuals to take part in the study voluntarily, having full awareness of the implications it involves, especially to express permission prior to participating in the study (Bhandari, 2023). Permission was obtained prior to the participants starting the research procedure, and there was no undue influence on participants willingness to get involved. The participants were properly informed that participating was comprehended that the study was and what they were subscribing to Voluntary participation. 3.9.2 Confidentiality and anonymity The ethical rules of confidentiality and anonymity are intended to protect human subjects' personal information during the gathering of data, evaluation, and dissemination procedures (Bhandari, What Is Qualitative Research?, 2023). When the study was undertaken anonymity was maintained and confidentiality was guaranteed to the participants. Participants’ identities were not disclosed in the research findings and the interview data will remain confidential until it is officially destroyed. 3.9.3 Data management In conducting the study, I followed all mandatory rules established in the Data Protection Regulation and the Personal Data Act pertaining to the processing of specific data and protecting it. The security of participants' personal information was protected throughout the research design stage. All collected data was stored into a safe pin coded drive and only used for this research study, and it will be destroyed officially after one year. 3.10 Validity and reliability The validity of the data obtained demonstrates the extent to which it represents the real field of inquiry (Ghauri & Gronhaug, 2005).and Reliability is that degree that occurs when an assessment of a phenomena gives reliable and consistent results (Carmines & Zeller, 1979). Keeping track of dependability is required given that it refers to the 20 accuracy and consistency of a measuring instrument's elements (Huck, 2007). In using Likert scales, this is the least reliable indication of reliability (Whitley, 2002).The participants were chosen based on being experts in their field for work and experience which was needed in supporting this study. 21 CHAPTER 4. - ANALYSIS AND INTERPRETATION OF FINDINGS 4.1 Introduction This chapter consolidates the findings, analyses, and interprets data from various participants to elucidate the research problem, addressing the main research questions and objectives. It explores the perceptions, meanings, and interpretations of the Fourth Industrial Revolution (4IR) in the South African context. The chapter discusses the readiness of South African youth to embrace 4IR employment opportunities, addressing the challenges of balancing digital aspirations and unemployment, the effectiveness of the South African education system in equipping youth for 4IR employment, and the discrepancy between educational curricula and industry demands. The chapter also addresses the inadequacy of pre- and post-matric educational systems integration and the absence of 4IR-related awareness campaigns. The findings are analysed in relation to existing literature evidence and the study's theoretical frameworks. 4.2 Perceptions, significations, and interpretations of the Fourth Industrial Revolution (4IR) Numerous definitions of the 4IR cover a range of digitization and technological areas. It includes AI and virtual realities along with other aspects like digital transformation falling under its purview but discussed superficially without being specific. The 4IR introduces an innovative method for tangible materials to be coded and administered through virtual platforms with minimal human reliance (Danylevych & Poplavska, 2020). The use of technology for problem-solving has become an inseparable part of contemporary life, from manual labour to automation, beyond the academic context. This notion is further debated by Burma (2016), cited in Mukondeleli Kanakana-Katumba et al. (2022) in suggesting that progress can be made by broadening our perspectives on convergence technologies, focusing not just on economic benefits as in the past iterations but also investigating their physical applications for biological and social impacts. The study 22 findings (Participant 4) further draw the definitions based on understanding the 4IR concept. “The Fourth Industrial Revolution is no longer about just the enhancements and advancement of ICT; it's also about the newer way of working with technology and the newer way within which the old infrastructure and technological way of doing things can be brought up to date, so fourth industrial revolution is about machine learning, Is about getting things done, It's about agility, It's about shortening ways of doing things, It's also about entrepreneurship insofar as changing the manual way of doing business and also going about Implementation of simpler and seamless processes through latest technology and other means within which technology can intervene” (Participant 4) The 4IR's significance lies in improving efficiencies and cutting costs across various domains as it gains recognition globally. Chala & Poplavska (2017), cited in Mukondeleli Kanakana-Katumba et al. (2022), asserts that business demands drive the move towards 4IR to attain global excellence, enable swift adaptation and minimize errors effectively. 4.3 The 4IR as a holistic transformation in the approach to technology The 4IR presents multi-dimensions on how it will change life. The study findings draw attention to automation and digitization, as vital components in the definition of the 4IR. The concept of 4IR fuses reality and a more significant contribution of machines co- existing realistically with humans. This notion finds expression in Mukondeleli Kanakana-Katumba et al. (2022), who contend that the 4IR blends technologies that break down barriers between the physical, digital, biological, and social realms, setting itself apart from previous industrial revolutions due to its reach beyond production into governance, management, living standards and work practices and influencing the economies. “What comes to my mind? Two things really are artificial intelligence, it is digitization, it is your automation, and I think Some of the things that come to my 23 mind around that is things like virtual reality” (Participant 5). “If you are looking at 4IR which is more about digitization and automation, quite a few things, right. But it is around technology” (Participant 1). “I will have to say is the virtual realities because now we are able to make these engagements online. and we are also able to have workshops and seminars online “(Participant 6) This revolution refers to significant technological progress and more comprehensive framework as it facilitates advanced tech solutions for diverse areas beyond academia alone (Mukondeleli Kanakana-Katumba et al., 2022). The study findings concur with various conceptualisations of the 4IR, which is less scientific but provides a layperson's understanding of the 4IR as it comes optimized efficiencies – thereby reducing costs across various industries, such as automotive production lines, whilst increasing understanding thereof (Mukondeleli Kanakana-Katumba et al., 2022). 4.4 Categories of 4IR: digitisation, automation, AI, and virtual realities Bhorat et al. (2023) notes the economic changes and the increasing growth of the digital economies in Africa. This must be considered part of the overall framework for structural economic transformation. The study also finds that the changes will affect how customer management is organised. “Render services to our clients in a more efficient and digital way, where they can interact with us on our social platforms or even operation platforms like our banking apps and others” (Participant 10) Previously, developed nations have followed a comparable trajectory towards progress, commencing with agriculture and progressing to manufacturing-focused growth entrants to eventual industrialization, resulting in service-oriented economies (Bhorat et al., 2023). However, the view of the public notice’s eminent replacement of human participation and manual labour. Although it seems a new trend, evolution carries life changes to humankind and the functioning of everyday life. 24 “So 4IR is a very trendy word that everybody throws around loosely. In my understanding is that like I said, I mentioned that technology is never evolving, it is the next phase of it where it is headed. there is fear that Robots want to take over, we will not have anything to do, there is artificial intelligent software that can serve that are self-sufficient, they can self-maintain, but you still need human beings to implement those things.” (Participant 7) 4.5 The readiness of South African Youth to Embrace 4IR Employment Opportunities 4.5.1 Youth knowledge, attitudes, and agility towards technology The study by Oke & Fernandes (2020) highlights the impact of students' knowledge of 4IR-related technologies on their preparedness for the 4IR era and interpersonal skills, highlighting that 4IR knowledge enhances learning experiences and equips them with essential workplace skills. In addition, Maskari, Riyami, & Ghnimi (2022) found that organizational factors like curriculum, academic programs, training courses, and technological infrastructure significantly impact students' preparedness for the 4IR era. They suggest that schools and universities should ensure adequate training programs to equip students with necessary 4IR characteristics, such as creativity, emotional intelligence, analytical thinking, and decision-making. Training should also focus on developing skills related to 4IR, such as high-impact technology proficiency, entrepreneurial mindset, digital skills, and a combination of technical and soft skills. The readiness of the South African youth to capitalize on emerging job opportunities in the digitized economy is notably high. Furthermore, the swift adoption of technology by the youth speaks to a favourable attitude, creating an environment conducive to aligning educational curricula with the dynamic needs of the users. Participant 3 alluded to the readiness and agility of youth towards technology and stated that: “… The youth agility and adeptness to adapt to the innovative technology they are already using Internet day-to-day experience. I mean, they carry the 25 technology wherever they go. they are ready and then even their attitude. I mean in the swiftness with which they adopted this technology, it makes it easier for the alignment of the curriculum to the user needs...” (Participant 3) The youth's readiness to embrace digital technology, knowledge, attitudes, and agility preparedness are intertwined with their apprehension due to high unemployment rates. Schools and universities should provide comprehensive training programs to equip students with 4IR skills, including creativity, emotional intelligence, analytical thinking, decision-making, high-impact technology proficiency, and entrepreneurial mindset. Participant 4 pointed to the challenges faced by youth and their preparedness for 4IR, indicating that: “There is some level of adaptation but not good enough to can write home about, so the youth of the country have a focus that is divided. On the one hand, they are embracing this digital era, and on the other hand, they worry about what the future has got for them. It is my contention that half of our youth, and I am saying it based on no other facts except that it is an observation that there is a handful of youth that are happy to venture into this era and are ready to take up jobs that are brought about by the digital era. However, the rate at which unemployment is growing is also making them think that it will take a long route to get to be ready for the digital era than doing the shortcut” (Participant 4) In the era of the 4IR, the employment landscape is marked by unconventional opportunities, exemplified by roles such as content creation. The study reveals a trend of young South Africans using platforms like TikTok and social media as content creators for income generation, demonstrating the potential of digitization. This indicates that the youth are well-prepared for job opportunities in the digital era, as they are adaptable to digital platforms and are actively participating in unconventional roles. This proactive approach to creating jobs through digital platforms demonstrates a promising readiness for the 4IR in SA. This view was stated by Participant 5 as follows: 26 “The type of jobs that the digitization in the 4IR era presents it is Unconventional jobs, for example, content creation, literally so many people and so many young people are on TikTok. They are on social media; they are being content creators, and for me, that is digitisation at work right there, creating jobs because people can get paid out of being content creators and all of that. So, if I had to use that example as the yardstick of evaluating their readiness, then yes, the South African youth is ready for jobs that are brought about by digitization” (Participant 5) 4.6 The Efficacy of the South African Education System in Equipping Youth for 4IR Employment Opportunities The education system plays a crucial role in preparing individuals for the 4IR, as it introduces a paradigm shift in society's operations. TechUK (2018) cited in Sikhakhane, Govender & Maphalala (2021) emphasize the need for South African schools to transform their education system to prepare the millennial generation for the 4IR. This transformation requires schools to equip the millennial generation with contemporary skills, including deep learning and digital wiseness, across various curricula. Like the study by TechUK (2018) cited in Sikhakhane, Govender, & Maphalala (2021), findings reveal that South Africa's current education system is inadequate in preparing youth for 4IR employment opportunities, despite the need for adaptability to the evolving technological landscape, as discussed below. 4.6.1 Disparities in exposure to 4IR: The rural and urban dichotomy The findings show significant disparities in technological education exposure between rural public and urban private schools in SA, with a significant deficiency in foundational technological education readiness due to resource scarcity, particularly the absence of computers in most public and rural schools. This finding was stated by Participant 1 as follows, highlighting the inefficiencies of the education system to prepare youth for 4IR employment opportunities adequately: 27 “But if you are looking at public schooling, in some schools’ kids do not have access to computers, how do you then Start teaching them about computing, because that is what fourth industrial revolution is about…. and if we say some of the kids have never actually had access to a computer today in 2023, we have a challenge, especially if you are looking at rural schools, therefore, I do not think our education system has prepared kids for the 4th Industrial Revolution. Not at all, in pockets, but not broadly” (Participant 1) The elucidation as mentioned above, undeniably highlights substantial challenges and the lack of readiness of the South African education system to adequately prepare secondary school pupils across the country for 4IR opportunities. The findings align with scholarly reports highlighting a technological disparity between urban and rural schools in SA. Researchers such as Meyer and Gent (2016), as well as Oke & Fernandes (2020), referred to in Moloi & Mhlanga(2021), have similarly emphasized the existence of a pronounced digital divide in the country. This divide underscores a substantial gap between individuals with access to technology and those without, underlining the challenges rural schools face compared to their urban counterparts. The research by Retief (2019) cited in Sikhakhane, Govender & Maphalala (2021) reveals that South African educational institutions are producing graduates who are not equipped to navigate the digital world effectively, particularly in the context of the 4IR. The education system, particularly for secondary schooling, is incapable of providing grade- appropriate education, which could help youth prosper in the 4IR. Carrim (2022) also highlights the global South's deficit in computer technology exposure within educational institutions. In SA, most schools lack computers, internet connectivity, and sufficient infrastructure, leading to less advanced computer literacy. Carrim (2022) highlights the need for integrating the 4IR principles into primary education for job readiness. However, SA 's primary education faces challenges due to a lack of incorporation in early learning stages. Participant 5 highlights a lack of preparedness within the foundational education system, highlighting the need for alignment with the evolving digital landscape. 28 “I think 4IR alone needs to be built into the delivery of the education itself. So, it means that the kids must be exposed to 4IR in the space of basic education level. For example, if we are so serious as a nation to prepare the youth to take advantage of employment opportunities that are brought about by the 4IR, it means that we need to be now teaching the youth things like coding, things like data science, things like Artificial intelligence. We need to expose and get them used to the concept of 4IR at the basic education level, and I do not think that we are doing that yet. So no, I do not think we are that ready…” (Participant 5) 4.6.2 Misalignment between educational curriculum and industry demands Carrim (2022) highlights the importance of academia in implementing the 4IR and defining its parameters. He states that universities in Africa must develop well-educated, socially conscious citizens with skills for the current era, as the 4IR significantly impacts educational programs, research focus, and societal advancements. However, the 4IR elements face challenges in both primary and secondary education and higher education systems. The current framework lacks practical exposure to these concepts, indicating a gap between theoretical knowledge in higher learning institutions and its application in real-world digital economy scenarios. Participant 3 emphasized this issue. “We are far from ready. As I said that we need to recalibrate our systems and our technologies to thoroughly prepare our youth for absorption and citizenship in the economy. Yes, one of the best ways to do it is the preparation of the Academic content, so that it is aligned to the economic realities on the ground…” (Participant 3) The gap between theoretical knowledge and practical experience in higher education is due to insufficient alignment of curricula with the rapidly evolving demands of the 4IR, and limitations in traditional teaching methodologies, which may not adequately develop skills essential for navigating the complexities of the 4IR. This finding is supported by 29 the contention of Reaves (2019), cited in Moloi & Mahlanga (2021), stating that SA 's current higher education structure may not be suitable for the volatile, uncertain, complex, and ambiguous environment of the 4IR, necessitating a restructuring to align degrees and diverse disciplines with 21st-century skills. Moreover, Reaves (2019) cited in Moloi and Mhlanga (2021) suggest that universities should revamp online learning methodologies to ensure effective teaching and practical application of skills in a cosmopolitan human condition. Similarly, the findings of this study also emphasize the need for a paradigm shift in higher educational frameworks to align with the demands of the 4IR era, including restructuring traditional disciplines and reimagining pedagogical approaches. This is crucial for equipping youth for seamless integration and active participation in the evolving economy. Participant 3 emphasizes the importance of aligning academic content with economic dynamics and skills for 4IR. This was also stated by Carrim (2022) suggests strategic repositioning of universities to enhance their role in SA's future, focusing on development, employment, and skills production. The success of the 4IR depends on acquiring new skills tailored to the revolution's technological requirements. Despite universities focusing on technologically inclined degrees, the South African higher education system is still failing to adequately prepare youth for the opportunities arising from the 4IR. This misalignment between higher institutions' skills and industry demands is exacerbated by socioeconomic challenges, creating obstacles to adaptability. “I will take it from the university that I work for, which I am sure is not ready, and there is much still to be done. There is just a whole lot of gaps. For me, we have quite a lot of interns that we get to utilise. And it is only theory which I have realised that it is all they are taught. They do not know what is it that is being done in the in the workforce. My view is they are not ready. There is still a whole lot of. Learning on the job that the companies need to invest in, there is a whole lot of training that we must do Before people can say that they are ready to do the 30 kind of work that we do want in the places. We are not yet there. The industries are the ones that should have to dictate whatever that is required….” (Participant 11) In line with the above assertion, Moloi & Mhlanga (2021) argue that millions of young people are becoming unemployed or underemployed due to a misalignment between university-produced skills and industry needs. Employers struggle to fill jobs due to the unavailability and supply of required skills. The growing mismatch between youths' skills and employer needs will intensify with the rapid pace of the technological revolution. 4.6.3 Lack of integration between pre-matric and post-matric educational systems The South African education system is inadequate in preparing youth for the 4IR, exacerbated by socioeconomic challenges. This lack of adaptability is due to misaligned academic syllabuses and curricula, limiting exposure to 4IR concepts in pre-matric and foundational phases. This misalignment undermines the development of skills necessary for the technologically advanced landscape of the 4IR. Socio-economic issues like access to quality education, economic inequality, and insufficient infrastructure further impede the system's adaptability. The study suggests a comprehensive approach is needed to bridge the gap between pre- matric and post-matric educational systems. It calls for a strategic realignment of curriculum content, pedagogical approaches, and educational resources. Implementing technology-focused education at an early stage can strengthen students' preparedness. The study also emphasizes the need for seamless integration, with introductory courses, awareness programs, and entrepreneurship-focused 4IR modules becoming integral components of the educational journey. This was emphasised by Participant 4 as follows: “But if you are saying does the system prepare the young graduates and the future leaders of our country? It is not supposed to start at post-matric. Therefore, we 31 need to integrate the two systems. The pre-matric and the post-matric education systems need to work hand in hand in preparing the world of technology in such a way that young graduates, when they crossover to high school and eventually to the post-matric level, they have already done some introductory courses, some awareness, some entrepreneurship based fourth industrial revolution courses, so the pace is that of a snail and we could do better. So, we are not doing very well...” (Participant 4) 4.6.4 Educational And Sector Specific 4IR Related Awareness Vandeyar (2015) sheds light on the failed implementation of the e-learning policy by SA’s Basic Education Department due to inadequacy in training teachers and general incompetence. There has been inadequate preparation of youth for the 4I revolution within the mainstream schooling system in SA. Lack of awareness is further stated in this research as having been little as 4IR has received minimal attention. The attempts made to raise awareness among the educational system and society at large about how unemployed youth and graduates may be impacted by the 4IR seem notably inadequate, and insufficient efforts to raise awareness may be causing a lack of understanding among young people and recent graduates about the challenges and opportunities presented by the changing job market. This assertion is further stated by Participant 4 from the study findings as indicated below: “Efforts to cultivate awareness within the educational system and broader society regarding the implications of the Fourth Industrial Revolution (4IR) for unemployed youth and graduates appear notably insufficient” (Participant 4) A deeper analysis of the subject of awareness is further alluded to by Sikhakhane, Govender & Maphala (2021) further state that although the Human Sciences Research Council comprehensively reviewed the obstacles and job demands brought about by the (4IR), the general insufficient attention was given to SA 's educational system's unpreparedness against these challenges. Awareness as a crucial component of the 4IR 32 installation is made by Sikhakhane et al. (2021) and further supported by Dwolatzky (2022) in emphasising that stakeholders, including educational institutions from schools to universities, training providers, professional organizations, and employers, play an essential role in this aspect. Incorporating these critical components will enable consistently superior outcomes while also narrowing both the digital divide and skill gaps in society at large. 4.7 Training needs and capacities for empowering youth in digitization In the context of youth readiness for digital economy transformation, Ezell's (2021) Indonesian case study revealed potential repercussions arising from digitization in labour market challenges. For participation in this global shift towards a digitalized industry, was proposed that young people must acquire adequate training and essential capabilities to prosper within such an environment. Additionally, individuals were advised to equip themselves with sufficient technological skills in the digitizing workplace. 4.7.1 Digitisation and skills disparities The mismatch between the rapidly developing digital economy and today's job market illustrates the shortcomings in technical vocational education. A complete revamp of infrastructure and educational programming must be prioritized; this includes a renewed focus on equipping students with innovative skills necessary for success within the digitally driven 4IR (McKinsey & Company 2018). The SA youth that can adapt effectively to future demands while also meeting current gaps in expertise related to enabling digitization trends across industries from Wall Street analysts all over the globe right down plumbers around suburbs locally. This is emphasised by Participant 4. “The question of how that it matches the needs of the digital economy is seen in the jobs that you find in the market, and the answer is that there is some level of 33 mismatch in the sense that if the digital economy is moving so fast and there is a need take along the technical vocation education system…” (Participant 4) These shortcomings can manifest as inadequacies in cognitive capabilities such as problem-solving, language proficiency and literacy Dwolatzky (2022). This is clear between rural and urban youth, with the former encountering obstacles such as insufficient opportunities for exploration, inadequate amenities, and the absence of crucial infrastructure and technological proficiency. In SA, the significant economic challenges facing the SA economy, are two significant obstacles: income inequality and unemployment to afford technological hardware for learning and personal development. “There is for the ones who are sitting back in the rural areas. They do not have enough exposure, they do not have the right facilities, they do not have the digital literacy. They do not have the infrastructure, you know, they do not have basic things like access to bandwidth for them to even do their homework, do their own research, and they come to university, they are ten steps behind” (Participant 2) McKinsey & Company (2018) predicts a substantial rise in the need for technological proficiency, emotional and social skills, and heightened cognitive capabilities linked to advancements brought about by the digital age by 2030 and Dwolatzky (2022) highlights on the delay in integrating innovative technologies into developing economies like SA. Technological advancements are becoming affordable, encouraging companies to prioritize capital over human workers. Sham (2023) asserts that despite youth making up 35% of the population, only a fraction of SA 's youth aged between 15-24 have found employment, contributing to vulnerable workers' susceptibility and emergent digitally driven technologies (Dwolatzky, 2022). Moreover, Sham (2023) further alludes that long- standing scarcity of skilled labour impedes the industry's growth, resulting in costly workforces and limited access to talented personnel. “To the extent that it must directly produce graduates with the capacity to manoeuvre in the era of 4IR, but the system only produces for fewer sectors…It is a struggle because if you look at the manufacturing sector, you do not have the 34 means within which 4IR could bring about new way of doing things. That is one bigger sector for the country that is lacking in terms of attracting newer graduates. The other sector that is also struggling is agriculture, which is one key economic sector in the country that is supposed to assist” (Participant 4) The significant disparity in the distribution of graduates among different sectors within the SA education system reveals a severe discrepancy between developed skills and industries' demands. This incapability stresses upon immediate targeted interventions to counterbalance workforce disproportionality. Participant 4 alludes to a need to create relevance between the industry skills needs and what the universities produce. “The mineral sector is one sector that should be attracting graduates, but because those sectors are yet to transform and have been neglected over time either by private or the public sector, it becomes difficult for even the system to be sending graduates in those sectors. If you are talking digital economy, the banking sector is flourishing...” (Participant 4) The job market is undergoing a significant transformation and without incorporating the 4IR and digitization into basic education programs, graduates will be ill -equipped for upcoming workplace demands. Bridging this gap requires proactive measures encouraging upskilling through exposure opportunities focused on intentional youth development within emerging technical areas. Although there is no straightforward resolution, a need to target critical gaps is a mandatory step towards closing skills deficits. 4.7.2 Youth choices and digital skills development The educational system in SA produces graduates who lack the necessary computer literacy skills required for employment opportunities within the digital economy (Retief, 2019). This debate is argued in the discussion from Participant 1, that unskilled labour is left out of opportunities due to a lack of 4IR skills. However, the current generation of young people is displaying an apparent inclination towards specialized educational pursuits in data engineering, artificial intelligence, and computer science, towards 35 personal development and career choices. Careers outside technology are at risk, with fewer opportunities and less job security. Participant 1 sheds inherent contrast to scenarios that exist in the career choice of the less privileged and the cohort that enacts different career choices inclined towards 4IR. “Kids or our youth today are going for data engineering degrees, they are going for artificial intelligence, they are going for much more like computer science degrees, which would enable them to take jobs which are technologically inclined. I can conclude that 4IR has jobs which favour skilled labourers and unskilled labour, where does that leave them? What way does it leave the petrol attendances because they are unskilled labour” (Participant 1) The study further aligns with the view by Nkosi (2023) that providing equal access to digital skills is crucial for creating opportunities and breaking down socio-economic barriers for young people across the country. In addition, vocational training insti tutions must introduce specialized programs highlighting essential aspects of these fields' intricacies. Also, collaborating between public and private sectors can facilitate internships; apprenticeship creates mentorship chances, helping youths gain pract ical experience alongside theoretical education and providing optimal solutions for their requirements (Nkosi G. , 2023). However, reducing youth unemployment in SA requires a comprehensive approach, with closing the digital divide as a critical and investing in educational initiatives that prioritize teaching relevant technical abilities (Nkosi G. , 2023). 4.7.3 Mentorship and capacity building The study findings allude to a need for industrial partnerships to create mentorship opportunities. This argument is supported by Frankiewicz & Chamorro-Premuzic (2020), stating that to adapt to constantly evolving technological advancements successfully, upcoming generations of talent must receive adequate training, to acquire essential skills (OECD, 2016). Participant 2 asserts that mentorship and capacity building are crucial for youth digital development in the ever-changing technological era. 36 “…I do think that when we have partnerships with industry, then we can bring in these mentors, right? Who can help to mentor these young people who can help and enable them to seize the opportunities that come through the tech sector, because they would save as sponsors to these young people, they can help them to build or at least guide them to build their own career path, to expose them to entrepreneurship and help alleviate the idea that young people should go looking for job; I think mentorship sponsorship will be invaluable in assisting our young people and guiding them in their career paths, and exposing them to digital literacy.” (Participant 2) Even individuals with existing exposure require mentorship and continued exposure. Mentorship is crucial in guiding youngsters, shaping their career paths, and navigating the complexities of the tech field. The notion that mentorship is not solely about job- seeking but facilitates entrepreneurship highlights a change in young people's attitude toward creating opportunities rather than only seeking employment. The study findings further shed light on mentorship and capacity building, which is asserted by Marwala (2019), cited in Olaitan et al. (2021), stating that to prevent the potential loss of jobs in the age of 4IR, it is advisable that retraining, upskilling and transforming employees' skills should be prioritized to stay ahead and meet evolving labour market demands. 4.7.4 Shortage of skills and digital job opportunities The low intake of digital skills among South African youth sets the country back in youth employment and development compared to other countries with programmes created for youth development (Katz & Murphy 1992). Participant 3 argues that there is a need to match the digital skills developed amongst the South African youth with those needed by the industry to curb youth unemployment. “It is only that the preparation of the youth for informal education that needs to be strengthened so that there is that resonance, between the innovative 37 technologies and the new roles and the skills that the students and the youth bring to bed so that they are easily absorbed into the economy” (Participant 3) Petit (1993) & Autor et al. (1998) support this notion by stating that the most prominent trends supporting highly skilled individuals have been seen in industries and organizations affected by automation and digitization. The discussion surrounding the scarcity of skills and abundance of digital opportunities for young people in SA is a complex one that reflects the nation's intricate socioeconomic landscape. As such, calls have been made for educational reform and increased investment into STEM (Science, Technology, Engineering, and Mathematics) subjects (Science, Technology Engineering & Mathematics), emphasizing the necessity of fostering technologically savvy workforces from as early on as possible throughout their academic journeys. Participant 3 further proposes restructuring the South African education curricula to meet the market skills deficit. “The curriculum needs to be repackaged. And then recalibrated so that it is aligned to the digital technology, the to the needs of the technological era. So, if authorities in higher education system and the academic community. Can accommodate and facilitate digitization of the delivery of their content and the digitization of the content itself, that would a remove all the handicaps and the obstacles towards the youth citizenship in the economy” (Participant 3). 4.8 The effects of digitisation on youth employment and unemployment The adoption of the 4IR technologies is increasingly rapid in developing nations, and scholars like Schwab (2017) argue that their integration could boost production and service delivery. The 4IR is a transformative approach that aims to reduce costs, simplify daily life, and revolutionize industries. The transformative nature of 4IR can foster human-machine collaborations, stimulate economic growth, and create new market opportunities (Olaitan, Issah & Wayi, 2021). This study sought to assess and analyse the 38 potential effects of digitization on reducing youth unemployment in SA. The resultant findings are comprehensively deliberated upon and interpreted in the subsequent discussion. 4.8.1 Digitisation and job creation The 4IR has the potential to significantly impact SA’s employment landscape, creating new job opportunities through diverse products and services (Alexander,2021). This study supports Alexander's argument, highlighting the potential of digitization to combat unemployment. Digitization can reduce youth unemployment, by equipping them with essential digital skills. The evolving nature of employment requirements in the digital era necessitates a workforce with contemporary skill sets. Fostering these skills among the youth can facilitate their relevance and employability in a rapidly transforming economic landscape. The continuous integration of technology into various sectors necessitates a workforce equipped with contemporary skill sets. According to Participant 3: “...digitization can help in reversing unemployment because youth now will have new digital skills that are easily required in the economy. digitization can expedite the reduction of unemployment in the country, through empowerment of youth, by way of introducing them to the innovative technologies and the new 4IR technologies that are relevant for the new economy….” (Participant 3) Digitization is expected to create new jobs, with technological advancements potentially making some jobs obsolete while new opportunities emerge, especially in technology maintenance, as highlighted by Participant 3: “You see, as we are seeing the onset of this innovative technologies, but then again, the maintenance of those technologies would be the new roles where our youth can still find a job…” (Participant 3) 39 This perspective aligns with the 4IR transformative impact, where innovative technologies disrupt existing economic structures and create novel opportunities. Technology maintenance is crucial for sustaining and optimizing innovative infrastructures, requiring a skilled workforce capable of developing and troubleshooting innovative technologies. This shift in employment dynamics requires adapting educational and training initiatives, emphasizing the importance of cultivating skills relevant to maintaining and supporting emerging technologies. The findings further pinpoint the profound impact that digitization could have, particularly in fostering interconnectivity across diverse realms and generating an array of employment opportunities. This argument aligns with the assertions of Svetlana & Tetiana (2019), who argue that the digital economy has a considerable influence on youth employment because it is built on global information and communication networks that connect all players (producers, consumers, partners, customers, young people, and adults) into a single economic mechanism. The 4IR also promotes national competitiveness, security, human capital development, and innovation while fostering creative industries (Odegov & Pavlova, 2018). Digitization offers employment opportunities, especially for youth, through interconnected and remote work capabilities. Digitization is expected to unlock numerous opportunities on the continent, free from traditional constraints, attracting a growing number of youths to explore opportunities beyond national borders, as per participant 4. “...Digitisation will bring about more opportunities on the continent, with less limitations of how people should be operating and therefore more youth will be attracted by those opportunities…. Will be attracted to even go beyond the borders of the country to want to explore the opportunities created by digitization….” (Participant 4) Digitization can potentially address youth unemployment in SA, but it is not a complete solution. Systemic issues like electoral system, education, public service, and healthcare contribute to the problem. Digitization is a step forward, but a comprehensive approach 40 is needed to tackle the interconnected challenges at the heart of SA 's unemployment. A comprehensive approach is crucial for addressing the country's unemployment issue. 4.8.2 Effect of digitisation on phasing out of traditional jobs The 4IR in SA presents both positive and complex employment opportunities. The country's elevated levels of inequality and poverty make unskilled and manual labour vulnerable. The social impact of job displacement is also a concern, as seen in the traditional role of petrol attendants. The lack of a well-defined transition strategy raises concerns about unemployment and employment, necessitating proactive measures to re- skill and reposition the workforce. “…. But in South Africa, we employ people to do exactly that, to pour fuel in your car; in other words, those jobs do not exist anymore.…. the question is, how do you then have a transition, how do you then create employment for petrol attendants, where would they work? For instance, even account accountant, 20 years from now, if we are now in full 4IR, if we have embraced the 4th Industrial Revolution in South Africa, we have artificial intelligence automation. the question is, how have you transitioned people who are doing accounting today, 'Because if you have not planned, they will be unemployed…” (Participant 1) Oke & Fernandes (2020) observations project the advent of the 4IR to introduce a notable reduction in the demand for numerous occupations, particularly those reliant on manual skills and physical capabilities. Oke and Fernandes (2020) posit that the transformative effects of 4IR will usher in a shift away from roles traditionally characterized by manual labour, thereby reshaping the employment landscape. Literature (Oke and Fernandes, 2020 & Alexander, 2021) also confirms the sentiments shared by these findings that there are feelings that technology will displace and replace humans, especially in jobs that require low-level skills, which may have detrimental effects on nations' social and economic stability. 41 The study reveals that digitization, particularly automation and artificial intelligence, is causing youth unemployment in SA. Participants believe these advancements could lead to the displacement of human labour by intelligent machines, posing a threat to their employment prospects. The lack of proactive measures could result in diminished job opportunities for the youth. “. But then again, the problem is with the impact of this 4IR technologies on job opportunities for the youth, because the youth find themselves being replaced by these innovative technologies. There are chances of getting jobs. I mean, the jobs and the role that they are supposed to be playing in the economy are now actually performed by these artificial intelligence technologies…’’ (Participant 3) Alexander (2021) warns that 4IR poses employment risks due to automation and AI potentially decreasing human labour needs. Intervention plans are needed for workers who may lose their jobs in the short term. Automation requires more sophisticated skills for remaining jobs, especially in SA, where high unemployment rates are prevalent among less formalized worke