A report released today says between 2003 and 2004 the youth accounted for 70 per cent of the unemployed in the country.

The report follows research commissioned by Umsobomvu Youth Fund and conducted by the Human Science Research Council and focuses on the challenges facing the country's youth.

It found that young in the last two years young people represented 70 percent of the country's unemployed.

The report looked at the status of youth in the first decade of democracy with an emphasis on key socio-economic areas, economic participation, education and skills development, poverty, health and well-being, social integration, and civic engagement.

The report found that unemployment remains a major challenge with black youth being the most affected.

Social development deputy minister Jean Benjamin has welcomed the report, saying the country should be able to find ways to create employment opportunities for young people.

"Unemployment is substantially a youth problem," said Dr Benjamin.

Umsobomvu CEO Malose Kekana said the report was important to youth empowerment and transformation.

"It is relevant to decision makers including civil society, government, private sector, and youth development practitioners working in the youth development sector," said Mr Kekana.

The report recommends the maximum participation of youth in economic activities through macro economic interventions such as encouragement of foreign direct investment that had potential to benefit young people.

It also suggests entrepreneurship training.

Youth training programmes should be strengthened further to promote youth economic activity, it said.

On education and skills development the report stated that the country inherited an education and training systems skewed by racial inequality.

It also recommended that every effort should be made to retain young people in schools where good education was offered and efforts made to prevent them from dropping out.

"Quality education should reflect contemporary requirements of the work place," the report indicated.

Regarding health and well-being, the report recommended that issues to be tackled should include sexually transmitted infections, HIV and AIDS, substance abuse, suicide, disability, crime and violence.

On social integration and civic engagement, it acknowledgement the role of the youth in dismantling apartheid. However it noted there was low participation in organisational structures during the democratic dispensation.

The report further recommended that opportunities should be availed for young people to affirm their worth and draw on the resources of the culture which they identify.