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IOL News
26-05-2025
- Business
- IOL News
Youth unemployment crisis: 5,787 new jobs created in South Africa's global business services sector
Unemployed graduates In the face of a youth unemployment crisis, 5 787 jobs for young people have been created in the global business services (GBS) sector, a catch-all phrase for outsourced services that support business operations across multiple locations or regions. Image: Phill Magakoe AFP In the face of a youth unemployment crisis, 5 787 jobs for young people have been created in the global business services (GBS) sector, a catch-all phrase for outsourced services that support business operations across multiple locations or regions. People employed in this sector provide services in aspects such as finance, HR, IT, and customer service. According to the October to December 2024 GBS Sector Job Creation Report by Business Process Enabling South Africa (BPESA), 6 290 new net jobs for international companies were recorded between October to December 2024, with 92% of these being for younger South Africans. For the 2024 calendar year, the GBS industry created 20,518 jobs, having grown three-fold in just five years. BPESA CEO, Reshni Singh, said that the 'continued growth and job creation are a testament to our industry's commitment to building careers for South Africans, especially our youth and those from marginalised communities'. Around 10 million South Africans aged 15 to 24 encounter significant challenges when entering the workforce, with unemployment rates notably higher than those of older youth. '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 mid-month. Half of all citizens between 15 and 24 years of age were unemployed in 2015. Ten years later, this number has jumped to 62.4%, said Statistics South Africa in its research. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Ad Loading BPESA's report showed that most of the jobs created as a result of expanding GBS activities into South Africa were in the Western Cape at 49.7%, followed by KwaZulu-Natal, Gauteng, and Eastern Cape. Cape Town is South Africa's business process outsourcing capital. Statistics South Africa's research showed that the situation regarding unemployed youngsters is worse in the North West and the Eastern Cape provinces, where 'the plight of unemployed youth deepens into economic exclusion'. In the first three months of 2025, the North West province recorded a youth unemployment rate of 58,8%, while only 43,0% of its young people aged 15 to 34 were active in the labour market. In the Eastern Cape, the picture is similarly serious, the agency said. '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,' Statistics South Africa said of the situation in the Eastern Cape. Singh noted that BPESA was in ongoing discussions with the Department of Trade, Industry, and Competition around a revised incentives package for the industry and was 'confident that with the right level of support the sector will drive further economic upliftment while showcasing South Africa's distinctive flair in servicing international customers'. The current GBS incentives include a rand-value grant per job over a five-year period and can be as much as R280 000 for every seat filled by an international company that relocates operations to South Africa. The bulk of the jobs were created in the utilities and energy sector, followed by retail and eCommerce and then insurance, BPESA's report showed. IOL
The Citizen
14-05-2025
- Business
- The Citizen
The SA job sector that is actually growing: global business services
Statistics SA announced that the unemployment rate in South Africa was 32.9% for the first quarter of 2025. After the bad news about unemployment on Tuesday, there is good news about one sector that is contributing to jobs growth: the global business services sector, that boomed in 2024, creating thousands of jobs for local youth. According to the latest Business Process Enabling South Africa (BPESA) Global Business Services (GBS) Sector Job Creation Report, the industry added 6 290 new international jobs in the third quarter of 2024 and contributed $101 million (approx. R1.8 billion) in export revenue, reinforcing its role as a powerhouse for economic and social transformation. From January to December last year, the sector added 20 518 new international jobs, amounting to $328 million in export revenue. Youth jobs accounted for 92% of new hires in the third quarter and 90% for the full year of 2024. ALSO READ: The dark picture of youth unemployment in South Africa Global business services surging in South Africa Reshni Singh, CEO of BPESA, says the global business services sector continues to surge, delivering significant job growth and boosting the country's export revenue. 'A key driver of this growth is impact sourcing, an initiative that actively recruits individuals from marginalised communities, offering life-changing employment to young South Africans from low-income backgrounds. 'These inclusive hires made up an impressive 42.8% of new jobs created for the quarter, helping individuals to secure stable careers while proudly representing South Africa's talent on the global stage. Singh says youth employment remains the backbone of the sector, with 92% of new hires people between the ages of 18 and 34 years. Most positions (71%) were frontline, voice-based contact centre roles, addressing global demand in sectors such as utilities and energy (30.54%), retail and e-commerce (18.30%) and telecoms (13.73%). She points out that the United Kingdom remained the largest market for outsourced services during the third quarter of 2024, accounting for 48% of new jobs, with the US contributing 32% of new hires. ALSO READ: Jobs bloodbath as unemployment increases by 1% in first quarter Skills development part of global business services 'Beyond job creation, the sector is prioritising skills development, with 26 876 workers trained between October and December 2024. BPESA is spearheading initiatives to reskill and upskill employees through career awareness programmes, leadership bootcamps and work-seeker support services, ensuring South African workers remain globally competitive.' Singh says the broader economic impact of the sector is remarkable. 'With the sector growing three-fold in just five years, South Africa is now firmly positioned among global offshore service leaders. The continued growth and job creation are a testament to our industry's commitment to building careers for South Africans, especially our youth and people from marginalised communities. 'We are encouraged by ongoing discussions with the dtic regarding a revised incentives package for the industry and remain confident that with the right level of support the sector will drive further economic upliftment while showcasing South Africa's distinctive flair in servicing international customers.' Singh says with strong government and private sector support, favourable business conditions and a skilled, empathetic workforce, South Africa's global business services industry is proving its mettle on the global stage, ensuring that the country remains a preferred destination for outsourced services worldwide.' NOW READ: Global Business Services sector committed to creating 500 000 jobs by 2030
