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South Africa's Youth Bear Brunt of Rising Unemployment, Expert Warns

South Africa's official unemployment rate rose to 32.7% in the first quarter of 2026, with youth unemployment reaching 45.8%. Ravi Naidoo, CEO of the Youth Employment Service, blames weak economic growth and poor education outcomes for excluding millions of young people from the formal economy. The country's GDP grew by only 1.1% in 2025, and 345,000 jobs were lost in early 2026. Naidoo urges government-private sector collaboration to stimulate investment and infrastructure development.

Key Points: South Africa Youth Unemployment Surges to 45.8%

  • Unemployment rate rises to 32.7% in Q1 2026
  • Youth unemployment hits 45.8%
  • Economy sheds 345,000 jobs
  • Education system fails to prepare youth
  • Expert calls for private sector collaboration
2 min read

South African youth bear brunt of rising unemployment, warns expert

Weak economic growth and education gaps drive South Africa's unemployment to 32.7%, with youth hardest hit at 45.8%, warns YES CEO Ravi Naidoo.

"Young people face severe competition from more experienced workers for what are in essence entry-level jobs. - Ravi Naidoo"

Johannesburg, May 14

South Africa's worsening unemployment is driven by weak economic growth and systemic shortcomings in education and skills development, leaving young people the hardest hit, according to Ravi Naidoo, chief executive officer of the Youth Employment Service.

The YES program is a business-led initiative launched in 2018 by South African President Cyril Ramaphosa to tackle youth unemployment, Xinhua news agency reported.

In a recent interview with Xinhua, Naidoo said that sluggish economic expansion, poor work readiness and limited job creation are excluding millions of young South Africans from the formal economy.

On the demand side, South Africa has been struggling with its economic growth, Naidoo said. According to Statistics South Africa, the country's gross domestic product increased by 1.1 per cent in 2025.

He said that despite significant public spending on education and training, many young people remain inadequately prepared for the workplace. "Education and skills development have not generated sufficiently work-ready youth."

"Young people face severe competition from more experienced workers for what are in essence entry-level jobs," Naidoo noted. "They also lack work readiness, as neither education nor families have been able to prepare them for formal sector employment."

While university graduates generally fare better in the labour market, most young South Africans do not hold tertiary qualifications, which further limits their opportunities, according to Naidoo.

"Over time, we expect new technology to accelerate labour shedding and further constrain the creation of new jobs," he added.

According to Statistics South Africa, the country's official unemployment rate rose to 32.7 per cent in the first quarter of 2026, up from 31.4 per cent in the final quarter of 2025. The economy shed 345,000 jobs during this period, pushing the total number of unemployed individuals past 8.1 million.

Youth unemployment remains particularly severe. The expanded youth unemployment rate reached 45.8 per cent, underscoring the deepening challenges facing young job seekers in Africa's most industrialised economy.

Economists and labour analysts have repeatedly warned that persistently high youth unemployment poses significant social and economic risks for South Africa, including rising inequality, poverty and social instability.

To counter these trends, Naidoo called on the government to work more closely with the private sector to stimulate investment and restore economic confidence.

He urged authorities to prioritise reforms and infrastructure investment in sectors such as ports, railways, roads, energy, water and digital networks to unlock growth.

- IANS

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Reader Comments

J
James A
Sad to see the YES program, which started with so much hope in 2018, still struggling against such high unemployment. The 45.8% youth unemployment rate is alarming—almost half of young South Africans can't find work. The private sector alone can't fix this; government needs to step up on infrastructure and reforms as Naidoo says.
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Priya S
Very concerning to see the unemployment rate rising to 32.7% in 2026. But I appreciate the honest assessment from Naidoo—the education system isn't producing work-ready graduates, which resonates deeply with India's debate on employability. Both countries need to bridge the gap between academia and industry. 🇿🇦🤝🇮🇳
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Sarah B
Naidoo's point about technology accelerating labour shedding is a wake-up call globally. As AI and automation advance, countries like South Africa and India, with large young populations, must invest in reskilling and digital infrastructure. Otherwise, we're just building a future with fewer jobs for more people. 😟
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Ravi K
As someone who follows labour economics, I find Naidoo's analysis spot on. The fact that 345,000 jobs were shed in just one quarter is devastating. India also sees similar numbers when our growth slows—look at what happened during COVID. But South Africa's base unemployment was already high; this is a crisis that needs urgent public-private cooperation, not just band-aid solutions.
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Karan T
Respectfully, I think the YES program's approach of relying on business-led initiatives is insufficient when economic growth is only 1.1%. In India, we've seen that direct government schemes like MGNREGA

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