South Africa's youth unemployment crisis: Structural inequalities and urgent solutions

IOL News

14-06-2025

Organisations speak on how the system has failed the youth as many are left jobless and have to fend for themselves.
Image: Freepik
Youth unemployment in South Africa has surged to 46.1% in the first quarter of 2025, marking a 9.2 percentage point increase over the past decade.
Oliver Meth, communications manager at Black Sash, said this is a national crisis.
'The latest Quarterly Labour Force Survey revealing an expanded unemployment rate of 56.3% among youth aged 18–34 is a devastating indictment of the country's failure to secure the future of its young people.
'This figure is not only alarmingly high, it reflects chronic structural inequality, policy inaction, and a growing disconnect between the promises of democracy and the lived reality of many young South Africans.'
Meth added: 'The government is failing its youth by underinvesting in inclusive economic development and failing to deliver on targeted, sustained, and accountable youth employment strategies. Initiatives such as the Presidential Youth Employment Intervention have been poorly coordinated, underfunded, and disconnected from grassroots realities.
'Moreover, there is insufficient political will to address corruption and inefficiency that diverts public funds from critical job-creation initiatives. The social grant system, while vital, is not being fully leveraged as a developmental tool for youth.'
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Siyabulela Monakali, spokesperson for advocacy group Ilitha Labantu, said the crisis reflects a 'structural lockout,' not a lack of education or ambition.
'This is not a skills gap. Even education no longer guarantees employment,' the organisation stated.
'Most of those affected are black youth from townships and rural areas, where access to opportunity remains severely limited.'
The organisation added that many unemployed youth have matric, TVET qualifications, or university degrees but remain outside the formal job market.
They argue that the education system continues to produce paper qualifications with little real-world value, particularly in under-resourced schools.
According to the organisation, over half of young South Africans do not complete matric. Those who do often lack digital, critical thinking, or entrepreneurial skills relevant to the modern economy.
'South Africa remains a country where your birthplace often determines your outcome,' said the organisation.
'Beyond the classroom, young people face a second layer of exclusion: limited access to mentorship, transport, the internet, and guidance on how to apply for jobs, bursaries, or skills programmes.
'Without these basics, even the best-intentioned policies remain out of reach for many.
'Without mentors, there is no one to show the way. Without training, there is no confidence to step forward. Without resources, the concept of 'opportunity' becomes abstract.'
The youth of 2025 are facing several challenges, from high unemployment rates to substance abuse.
Image: File
Ilitha Labantu also criticised the private sector, saying most companies have failed to transform their leadership and are not doing enough to create pathways for youth.
'Corporate South Africa continues to hold the country at ransom. Most companies remain white-owned, with white-dominated leadership that bears no resemblance to the nation's demographics or aspirations.'
The group said the most effective job creation sectors, care work, green energy, construction, agro-processing, digital services and creative industries, remain out of reach without proper investment and training infrastructure.
'There is high demand for skills in coding, solar installation, caregiving and data analysis, but access to this training is limited,' it said.
It called for urgent improvements to TVET colleges, including updated curricula, reliable infrastructure, and stronger links to local employers.
Ilitha Labantu drew a direct connection between unemployment and youth crime, particularly gang activity. In areas with few job prospects, gangs are often the only available source of income and belonging.
'It is easier to make R200 a day through crime than to spend six months applying for jobs that do not exist,' the group said.
The fear and distrust of law enforcement were also raised.
'For many, fear of the police rivals fear of criminals,' the group stated, calling for trauma-informed policing and collaboration with social workers and NGOs.
Long-term youth unemployment, they argue, is not just an economic issue, it is a threat to national stability.
'The longer we leave youth excluded, the more likely they will turn to alternatives that offer what the state has failed to: a sense of identity, control and power.'
Abigail Moyo, spokesperson for the trade union United Association of South Africa (UASA), also raised concerns about exclusion in government policy discussions.
Responding to President Cyril Ramaphosa's recent National Dialogue initiative, Moyo asked: 'Where are the young people who face the daily challenges of unemployment and inequality? We want to see the young unemployed youth contributing to these dialogues.'
She called for the establishment of forums that include graduates and job seekers, saying the most practical solutions often come from those directly affected.
Meanwhile, employment platform Lulaway's CEO Jake Willis said South Africa is confronting 'a national emergency that threatens the future of an entire generation'.
Lulaway has connected thousands of young job seekers to employers through a mix of technology, work readiness training, and mentorship.
Business Partners Limited, a major financier of small businesses, said the country's future may lie in youth-led entrepreneurship.
Area Manager Lawrance Ramotala said SMEs are playing a critical role in creating jobs, transferring skills, and mentoring first-time entrepreneurs.
'In many cases, SMEs are the first to take a chance on young people,' he said. 'What we're seeing is a groundswell of youth entrepreneurship rooted in community enterprise.'
Ramotala said young entrepreneurs are not just surviving, but building businesses that tackle social issues, from education to mental health. But he warned that without support, these efforts are at risk.
'It's not enough to encourage youth to start businesses. They need support to stay the course, particularly in the early stages when failures can be discouraging and resources are limited.'
He added that many young business owners are creating peer-to-peer support systems that go beyond what large companies can offer, using their platforms to share opportunities, funding, and mentorship.
'If we want to build a more inclusive, sustainable economy, we must invest in our youth, not just as jobseekers but as job creators. By backing youth entrepreneurship, we're not only building businesses, we're building futures.'
Cape Argus