Business

Addressing the Youth Unemployment Crisis in South Africa

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Some 10 million South Africans face the highest barriers to entering the workforce, with unemployment figures significantly outpacing that of older youth.

Image: Henk Kruger

Some 10 million South Africans – the younger generation of between 15 and 24 years of age – face the “highest barriers to entering the workforce, with unemployment figures significantly outpacing that of older youth,” with dire consequences for South Africa’s economic growth.

“For many young South Africans, landing a job is more than just a milestone, it is a crucial step toward economic independence and inclusion. Yet for millions, this first step remains out of reach,” Statistics South Africa said in a data print released this week.

Veteran business commentator, Adrian Schofield, told IOL that the “growth in the proportion of unemployed young people is a direct obstacle to growth in the country’s economy”. He added that this sort of situation led to more crime, which would also dissuade investment.

Recent research by Statistics South Africa, which further breaks down its Quarterly Labour Force Survey released on Tuesday, showed that half of all those between 15 and 24 were unemployed in 2015. Ten years later, and this number has jumped to 62.4%.

South Africans can legally start working at 15 years of age.

For all youngsters aged 25 to 34, the rate increased from 31.4% to 40.4% over the same period, the agency said. In 2015, the unemployment rate for youth aged 15 to 34 was 36.9%. A decade later, it had jumped 9.2 percentage points, which Statistics South Africa said is an “increase that highlights deteriorating prospects for millions”.

Schofield added that the “gross lack of attention to technical, engineering and maths skills in the education pipeline condemns the majority of matriculants to low-skilled or service occupations (with low incomes), if they can find any employment”.

Where youth do have jobs, these are generally in areas such as retail, wholesale, and hospitality, which accounts for a quarter of those with jobs, said Statistics South Africa. “These numbers paint a clear picture: many young workers are clustered in low-skilled, or service-based occupations,” it said.

Of those who were unemployed, almost 60% have no previous work experience, said Statistics South Africa. “That means nearly six in ten unemployed young people are still waiting for their first opportunity to enter the job market. Without experience, youth struggle to get hired – yet without being hired, they cannot gain experience,” said Statistics South Africa.

It added that “this cycle of exclusion continues to fuel long-term unemployment and stalls skills development at a critical stage of life”.

The unemployment rate also reflects entrenched gender inequalities, with women continuing to face greater barriers to employment, particularly among the youth. Some 37.5% of women between 15 and 24 are in the category Statistics South Africa calls Not in Employment, Education or Training.

This disparity is worse in the 15 to 34 age group, at 45.1% overall – women at 48.1% compared with 42.2% of men. This, Statistics South Africa said, highlights “a persistent gender gap in access to work and skills development”.

The agency said: “The challenges facing young South Africans in the employment space are not new, but they are trending negatively in many cases. Over the past ten years, youth unemployment has remained persistently high,” said Statistics South Africa.

By comparison, the overall unemployment rate is 32.9%, up from the last three months of 2024 when it was 31.9%. Including discouraged job seekers, a more accurate measure of the job situation, the rate went from 41.9% to 43.1% over the same quarter-on-quarter analysis, Statistics South Africa said on Tuesday.

The plight of the youth is more dire in the North West and the Eastern Cape provinces, where it deepens into economic exclusion. The first quarter of 2025 saw North West record a youth unemployment rate of 58.8%.

“In the Eastern Cape, the picture is similarly serious. With an unemployment rate of 54.3% and the lowest youth labour force participation rate nationally at 39.8%, fewer than four in ten young people are either employed or looking for work,” said Statistics South Africa.

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