Youth Unemployment in South Africa: Progress, Challenges, and Solutions

Despite a slight decline in overall unemployment, youth unemployment remains a pressing issue in South Africa. The latest Quarterly Labour Force Survey (QLFS) for the fourth quarter of 2024 showed a second consecutive drop in unemployment. However, many young people continue to struggle to enter the workforce.

Certain sectors have shown promising signs of job creation. According to Nkosinathi Mahlangu, Momentum Group’s Youth Employment Portfolio Head, seasonal work opportunities contributed to growth in agriculture and retail in previous quarters.

“We appreciate the growth in the finance and manufacturing sectors in the fourth quarter. The finance and manufacturing industries added 232,000 and 41,000 jobs, respectively. However, job losses in agriculture, mining, and construction reflect ongoing structural challenges that disproportionately affect young and vulnerable workers.”

Mahlangu emphasized the need for a skills audit across industries to balance the supply and demand of critical skills, ensuring young people can participate in economic activities.

Mahlangu believes that identifying sector-specific opportunities and ring-fencing a portion of them for young South Africans could be key to addressing unemployment. He pointed to the R9 billion infrastructure project announced in the State of the Nation Address as a potential driver of youth employment over the next three years.

“Entrepreneurial interventions and support are needed as catalysts for youth to actively participate in the economy. Job placement is not the only available pathway, and fostering entrepreneurship could help South Africa achieve the targeted 3% economic growth.”

Beyond the lack of work experience, Mahlangu highlighted the misalignment between skills acquired and job market demands as a significant barrier.

“The gap between what graduates study and the skills employers require makes job hunting difficult. Additionally, technical and artisan careers are not promoted enough as viable alternatives to traditional employment.”

Mahlangu questioned what lies ahead for the class of 2024 after achieving record-breaking matric results.

“Higher pass rates are encouraging, but a certificate alone does not create opportunity. Many young people who do not qualify for university are left in limbo, unaware of alternatives like Technical and Vocational Education and Training (TVET) colleges or learnerships.”

He stressed the need to promote TVET colleges as a first-choice career path rather than a backup plan, as they play a critical role in producing artisans and technical professionals.

Mahlangu emphasized the role of businesses in addressing youth unemployment.

“The private sector has a direct stake in solving youth unemployment, not just as a corporate responsibility but as an economic necessity. Businesses already serve young people as consumers—they should also engage them as future employees, entrepreneurs, and innovators.”

He suggested that companies make entry-level opportunities, bursaries, and learnerships more visible, as many young job seekers remain unaware of corporate-sponsored training programs.

“Digital outreach, awareness campaigns, and skills-based incentives—such as discounted mobile data or financial services for completing accredited training—could help bridge the gap between job seekers and employers.”

While government initiatives like the 235,000 work opportunities announced in SONA 2025 are a step in the right direction, Mahlangu stressed the importance of creating sustainable, long-term employment rather than temporary job placements.

“How many of these roles offer a living wage? How many transition into permanent employment? Without clear pathways to career growth, these initiatives risk being short-term fixes rather than long-term solutions.”

As South Africa seeks to address youth unemployment, a combination of skills development, industry collaboration, and policy implementation will be crucial in creating sustainable opportunities for the next generation.

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Sourced: The Citzen