Amid rising unemployment and the simultaneous development of artificial intelligence, which is shaping the labor market, young people in South Africa are facing serious challenges. The unemployment crisis in South Africa has intensified, raising concerns about the readiness of youth for a labor market increasingly defined by technological changes and AI.
The situation is compounded by the fact that women, whose unemployment rates continue to rise, bear a double burden: they support their families and are forced to prepare the next generation for a workplace that is transforming even before they can enter it.
Nelo P Spice, Executive Director of the youth employment organization JA South Africa, believes that the employment problem goes far beyond simply creating new jobs. She noted that 'it is very depressing and heartbreaking to see that women still bear the main burden of unemployment while supporting families. They need to provide food for young people. They need to care for the elderly.'
According to the Statistics South Africa Quarterly Labour Force Review for the second quarter of 2026, the official unemployment rate increased to 33.6%, up from 32.7% in the first quarter. The number of unemployed rose by 345,000 people to approximately 8.5 million, while employment decreased by 16,000 people to 16.7 million.
Of particular concern is the sustained rise in youth unemployment, which climbed to 43.8% from 43.7% in the previous quarter, affecting five million young people aged 15 to 24. Spice emphasized that the latest data demonstrates the disproportionate impact of unemployment on youth and women.
Recent labor data showed an increase in the labor force by 329,000 people over the quarter, while unemployment rose by 345,000. Frank Blackmore, lead economist at KPMG South Africa, stated that these figures reflect persistent weakness in the labor market. He explained that the growth of the labor force by 329,000 people with a decrease in employment by 16,000 and an increase in the number of unemployed by 345,000 is due to the long-term consequences of low economic growth in South Africa.
Although economists point to sluggish economic growth as the main cause of unemployment, Spice argues that the task goes beyond merely increasing the number of vacancies. She insists that solving youth unemployment must begin much earlier than when a young person enters the labor market, and that more needs to be done than just creating jobs, as South Africa's current education and employment system was designed for a different era.
How AI is changing required skills
As artificial intelligence becomes more deeply integrated into global workplaces, there is growing concern about how technology will affect employment opportunities, especially for young workers. Spice views AI as both a challenge and an opportunity. Within JA programs this year, the main focus is on equipping youth with an understanding of AI and using it to drive innovation, as this is the future.
She warned that many entry-level positions, traditionally serving as career stepping stones, are becoming increasingly automated. Spice compared the position of a young person without digital skills today to that of someone without literacy in past generations, noting that AI is already changing the global labor market by automating administrative, auxiliary, and routine tasks.
In her view, future employability will depend less on rote knowledge and more on creativity, adaptability, digital skills, collaboration, and entrepreneurial thinking. Youth must be developed to be capable of seizing opportunities, solving problems, and creating something new.
STEM skills remain critical
A serious issue remains the low interest among young women in science, technology, engineering, and mathematics (STEM) subjects, which experts believe could exacerbate future employment inequality. Spice insists on the need for targeted measures to encourage young women to study and work in STEM fields, emphasizing that they must be shown that STEM is an achievable field.
This concern is particularly relevant as businesses increasingly seek employees with technical and digital skills to support the implementation of technologies and innovations. Economists also caution that while AI may boost productivity in the long run, it is unlikely to quickly solve the unemployment crisis in South Africa.
Dr. Lerato Ntuli, an economist at Anchor Capital, recently noted that the unemployment problem in South Africa is largely structural, caused by infrastructure limitations, weak investment, and slow economic growth. She believes that AI is unlikely to have a significant impact on reducing unemployment in the near term, but the technology could improve competitiveness and productivity in the long run, provided there are investments in energy, digital infrastructure, and skills development.
Entrepreneurship can help
JA South Africa runs entrepreneurship and financial literacy programs in schools and communities across all nine provinces to introduce youth to business skills and innovation from an early age. Spice believes that entrepreneurship education can play a vital role in adapting youth to the changing economy.
Instead of focusing solely on job searching, she advocates for encouraging young people to identify opportunities, solve problems, and create value in their communities. Given that youth unemployment remains around 44% and economic growth is expected to be weak, preparing youth for the future world of work has become extremely urgent.
