Skills gap drives youth joblessness as 62.8% of young South Africans remain unemployed

South Africa’s youth unemployment crisis deepened in the second quarter of 2026, with economists warning that poor education outcomes and a persistent skills deficit are locking large numbers of young people out of the labour market.

Labour figures show rising overall unemployment

Statistics South Africa’s Quarterly Labour Force Survey (QLFS) reported the official unemployment rate rose to 33.6% in the second quarter, up from 32.7% in the first quarter. The number of unemployed people increased by 345,000 to 8.5 million, while employment declined by 16,000 over the quarter.

Youth hardest hit

The QLFS underlined a particularly acute challenge for young people. According to Investec economist Lara Hodes, youth unemployment stood at a “critically elevated” 62.8%, up from 60.9% previously. Hodes said the “youth segment of the market remains the most disadvantaged when it comes to finding sustainable employment.”

Education increasingly determines job prospects

The survey highlighted the growing premium attached to education. Those without a matric certificate faced an unemployment rate of 39.2%, while unemployment among graduates was 12.4%. Hodes said:

“Access to education remains essential, with the unemployment rate amongst those holding less than a matric certificate at an elevated 39.2%, while unemployment amongst graduates falls sharply to 12.4%.”

Economists point to a long-term structural skills problem

PSG senior economist Johann Els described the figures as evidence of “a structural problem that had been decades in the making.” He noted that while around 900,000 jobs had been created over the past three-and-a-half years, employment growth continued to lag population growth, leaving more people competing for limited opportunities.

Els added:

“The prospects are improving but it’s not great because the labour market is significantly constrained. We haven’t got the skills we need. We’ve done basically nothing about the education system over the last 30 years to fix the skills deficit.”

He also said employers were increasingly reluctant to hire workers they regarded as unskilled and were instead investing in machinery, equipment and technology.

Learning outcomes point to early weaknesses

The education shortfall appears long-standing and begins well before young people enter the labour market. The 2021 Progress in International Reading Literacy Study (PIRLS) found South African Grade 4 learners averaged a reading score of 288, compared with the international centre point of 500, making the country the lowest-performing participant. The study found that more than 80% of learners failed to reach the study’s lowest international benchmark.

South Africa’s results in the Trends in International Mathematics and Science Study (TIMSS) showed only modest movement. Grade 9 mathematics improved from 389 in 2019 to 397 in 2023, remaining below the TIMSS low international benchmark of 400. Science performance declined from 370 to 362.

Calls for a stronger STEM ecosystem

North-West University academic Dr Paul Iwuanyanwu said South Africa needs a complete science, technology, engineering and mathematics (STEM) ecosystem. He argued it should include “stronger schools, better-trained teachers, capable artisans and technicians, properly funded researchers, modern infrastructure, and institutions able of converting knowledge into functioning public services.”

Iwuanyanwu added:

“STEM education matters because South Africa cannot repair its infrastructure or grow its economy using skills it has failed to develop.”

Large share of youths disconnected from learning and work

The QLFS also reported that 36.4% of South Africans aged between 15 and 24 were not in employment, education or training (NEET), a group the survey said faces limited opportunities to gain the skills employers increasingly demand.

Economists in the report said reforms to support investment and growth have been implemented but that further efforts are needed to generate sustained economic growth and meaningful job creation.