According to Statistics South Africa data, 36.4% of South Africans aged 15 to 24 are neither employed, studying, nor in training. The youth unemployment crisis in South Africa has worsened in the second quarter of 2026, with nearly two out of three young people unable to find work. Economists warn that the country's job crisis is increasingly turning into a skills crisis.
The latest Quarterly Labour Force Survey (QLFS) from Statistics South Africa showed that the official unemployment rate rose to 33.6% in the second quarter, up from 32.7% in the first three months of the year. This occurred amid an increase of 345,000 unemployed individuals, bringing the total to 8.5 million, while employment decreased by 16,000 during this quarter.
Despite the high overall unemployment rate, the statistics highlight the growing importance of education. According to Investec economist Lara Hodges, youth unemployment has reached a 'critically high' level of 62.8%, up from the previous 60.9%. Hodges noted that 'the youth segment of the market remains the most vulnerable regarding securing sustainable employment.'
Education as a Key Factor
The QLFS also demonstrated how education affects employment prospects. Among South Africans without a matric certificate, the unemployment rate was 39.2%, compared to only 12.4% among graduates. Individuals with other higher qualifications also showed unemployment rates significantly below the national average. Hodges emphasized: 'Access to education remains vital, as the unemployment rate among those with less than a matric certificate is high—39.2%, while unemployment drops sharply to 12.4% among graduates.'
Hodges added that South Africa has made significant progress in implementing reforms to support investment and economic growth, but further reform efforts are necessary to achieve sustainable economic development and create decent jobs.
Structural Labor Market Issues
PSG Senior Economist Johann Els stated that recent data points to a structural problem that has developed over decades. Although about 900,000 jobs were created in the last three and a half years, job growth continues to lag behind population growth, resulting in more South Africans competing for too few opportunities. Els noted: 'Prospects are improving, but it is not great because the labor market is significantly constrained. We lack the necessary skills. We have done almost nothing with the education system in the last 30 years to address the skills gap.'
Els also reported that employers are increasingly reluctant to hire workers they deem unqualified, preferring instead to invest in equipment, machinery, and technology.
Problems Rooted in the Past
The problem begins long before young people enter the labor market. The PIRLS 2021 study found that 4th-grade students in South Africa achieved an average reading score of only 288, significantly below the international benchmark of 500. This made the country a participant with the worst performance indicators. Over 80% of students failed to reach even the lowest international benchmark of the study.
A similar picture was presented by the TIMSS 2023 study. Although the 9th-grade math score in South Africa improved from 389 in 2019 to 397 in 2023, it remained below the low international TIMSS benchmark of 400. Scores in natural sciences declined from 370 to 362, placing South Africa among the educational systems with the poorest results among international test participants.
Academic Dr. Paul Ivunyanvu from North-West University believes that South Africa requires a complete Science, Technology, Engineering, and Mathematics (STEM) ecosystem.
The Need for Comprehensive Reform
Ivunyanvu explained that this ecosystem must include 'stronger schools, better trained teachers, skilled artisans and technicians, properly funded researchers, modern infrastructure, and institutions capable of transforming knowledge into functioning public services.' He added that 'STEM education is crucial because South Africa cannot rebuild its infrastructure or develop its economy using skills it has failed to develop.'
The education problem is also reflected in the number of young people not engaged in either learning or work. Stats SA reported that 36.4% of South Africans aged 15 to 24 fall into the NEET category (Not in Education, Employment, or Training), limiting their ability to acquire skills increasingly demanded by employers.