According to a study conducted by Xpatweb, 76% of businesses operating in South Africa face difficulties hiring specialists with critical local skills. This figure has decreased from 84% in 2025. Meanwhile, 67% of companies are forced to seek workers abroad. Over seventy percent of respondents noted that vacancies have a serious or significant impact on their operational activities.
The greatest shortage is observed among engineers (27%), followed by Information and Communications Technology (ICT) specialists with a record 26% (compared to 22% in 2025 and 14% in 2024), and artisans (22%). For the first time in almost a decade, Artificial Intelligence and New Technologies areas entered the top 10 (21%), as did senior project management (16%).
This data emerged after Stats SA reported an increase in the official unemployment rate to 33.6% in the second quarter, with youth unemployment (ages 15–34) reaching 47.4%, meaning approximately 8.5 million people are looking for work.
This raises the question of how employers can experience a skills shortage in a country with such a high level of unemployment. Minister of Higher Education Buti Manamela offered an explanation, arguing that South Africa's problem lies not so much in a lack of skills, but in a 'workforce transition capability issue'—meaning institutions are not ready to move people from current employment sectors into areas where the economy is heading.
For business leaders, this situation has tangible consequences. Marisa Jacobs from Xpatweb cited examples of project delays, missed deadlines, and reduced profits due to unfilled positions. The absence of an engineer prevents a project from starting, while a lack of a qualified mechanic reduces a factory's production capacity.
Most employers are not asking for the impossible. Among those experiencing an engineering shortage, 30% desire candidates with six years of experience, and 65% require a diploma. Regarding artisans, nearly 80% require a professional certificate. These individuals possess the necessary experience and certification, and they cannot be quickly trained. A manager needing a senior engineer this quarter cannot wait for a freshman to graduate.
This is why 67% of employers are seeking staff abroad, highlighting the importance of the visa system. 79% of respondents found the visa application process difficult or somewhat difficult, and 51% stated that the Critical Skills List does not fully or at all cover their needs.
Policy steps are currently being taken, including the implementation of the Trusted Employer Program and a points system, and the Department of Home Affairs has published processing times for 2026/27.
Educators point out that these problems do not start at the visa office. Many shortages reported by employers are determined years earlier, in mathematics and natural science classes, and subsequently in technical colleges.
Technical colleges are under pressure. As reported by Daily Maverick in January, South African TVET colleges are facing a shortage of specialist lecturers because industry salaries and prestige draw qualified experts away from educational institutions. Furthermore, another analysis shows that many students entering TVET lack a solid foundation in mathematics and natural sciences, which hinders technical training.
The numbers speak for themselves. The opposition party ACDP informed Parliament in March that TVET colleges graduate about 20,000 artisans annually against a need for 30,000. This gap aligns with what employers report.
The government claims to be reforming the system. Manamela stated that the goal is to make TVET colleges centers for vocational training and artisan development. However, the question remains: will there be enough qualified lecturers and workshop equipment when these students enter?
The emergence of AI and project management in the list demonstrates how rapidly market demands are changing. In an Xpatweb webinar survey, 47% of participants stated that AI is already transforming existing roles, and 14% stated that it is reducing the need for some of them. Jacobs linked the project management issue to so-called 'soft skills' such as critical thinking, adaptability, and collaboration. These are qualities that both schools and employers deem desirable but rarely measure.
The deficit affects other categories besides the core ones. It is difficult to fill vacancies in media and marketing (18%) and in executive positions (C-suite, 11%, compared to 6%), and there is also a shortage in healthcare, science, finance, aviation, and foreign language proficiency.
While attracting foreign labor can close immediate gaps, it cannot replace the domestic talent pipeline. For a country with 8.5 million job seekers, this internal system is the long-term solution.



