Govt Scales Up Battle Against Youth Unemployment with Reforms in Jobs, Education and Healthcare

In response, the government has rolled out large-scale, multi-faceted programmes focused on providing income support, skills training, and work experience.

As South Africa charts a path toward inclusive and accelerated economic growth, youth unemployment remains a defining national challenge—and a priority at the highest level of government. Delivering the Presidency’s Budget Vote for the 2025/2026 financial year, President Cyril Ramaphosa outlined an extensive series of initiatives designed to uplift millions of unemployed young South Africans, expand educational access, enhance healthcare delivery, and modernize governance through digital transformation.

Youth Unemployment: A National Emergency

President Ramaphosa declared youth unemployment “the greatest challenge that faces South Africa today.” Alarmingly, of the 10.3 million South Africans aged 15 to 24, about 3.8 million are neither working nor enrolled in education or training. Despite their “energy, initiative and untapped potential,” many are excluded from the formal economy.

In response, the government has rolled out large-scale, multi-faceted programmes focused on providing income support, skills training, and work experience.

Presidential Employment Stimulus and School Assistants Programme

Among the most significant efforts is the Presidential Employment Stimulus (PES), which has demonstrated the transformative power of investing in people. A standout component is the Basic Education Employment Initiative (BEEI), which began a new phase in June 2025. Over 200,000 young people were placed as school assistants in more than 20,000 schools.

Since its inception, this initiative has created over one million job opportunities, with participants supporting teachers, school administration, and maintenance. Beyond employment, the programme builds critical experience and skills that increase young people's employability and entrepreneurial potential.

SAYouth.mobi: Tackling Barriers to Entry

Launched in 2020, SAYouth.mobi is a zero-rated platform connecting youth with job opportunities without the barrier of mobile data costs. As of 2025, the platform has:

• Registered 4.7 million young users

• Facilitated over 1.67 million earning opportunities

• Achieved 70% access by black African women

• Reached 65% of users from grant-receiving households

This demonstrates the programme’s success in reaching the most marginalized youth, bridging the digital and economic divide.

Youth Employment Service (YES): A Global Model

The Youth Employment Service (YES), now the world’s largest corporate-funded youth jobs programme, has provided over 190,000 one-year work experience placements. These are not public sector posts but private-sector-driven opportunities, strengthening employability while integrating youth into formal value chains.

Education Reforms to Uproot Structural Poverty

President Ramaphosa reinforced the pivotal role of education in eradicating poverty. Key focus areas include:

• Early Childhood Development (ECD): Building strong learning foundations

• Infrastructure upgrades: Completion of 97% of sanitation projects under the SAFE initiative, eliminating dangerous pit latrines in schools

• BELA Act Implementation: The Basic Education Laws Amendment Act, enacted in December 2024, modernizes school governance and teacher employment laws to reflect the current education landscape

• NSFAS and Vocational Expansion: Over 800,000 university and TVET college students are supported by NSFAS in 2025. The National Skills Fund has also extended support to the “missing middle”—students who are neither poor enough to qualify for full subsidies nor wealthy enough to pay fees.

Healthcare and NHI: Responding to Fiscal and Health System Challenges

On healthcare, the President reaffirmed the state's commitment to implementing the National Health Insurance (NHI), despite challenges. This includes:

• Hiring more doctors, nurses, and community health workers

• Procuring new equipment and supplies

• Strengthening HIV/AIDS and TB response mechanisms

South Africa has faced a funding shock following the United States’ withdrawal of R7.9 billion in annual HIV and TB support, primarily from PEPFAR. In response, National Treasury has allocated R753 million under emergency provisions to mitigate this shortfall.

Despite this, Ramaphosa affirmed that South Africa remains committed to meeting HIV testing and treatment targets, with Deputy President Paul Mashatile leading the national AIDS response through SANAC.

Governance and Ethics: Building a Capable State

The President emphasized that solving youth unemployment or healthcare inefficiencies demands a corruption-resistant and capable state. Key governance reforms include:

• Public Service Commission Bill: Recently passed by the National Assembly, the bill grants the Commission more autonomy, ensuring the executive must act on its recommendations

• Enhanced accountability mechanisms across all public institutions

Digital Transformation Roadmap: Bringing Services to the People

In a bid to modernize governance, South Africa launched its Digital Transformation Roadmap in April 2025. This initiative envisions:

• A digital identity for every citizen

• A national digital payments system for fast, affordable transactions

• Interoperable data-sharing platforms across departments to minimize red tape and streamline services

Ramaphosa said this roadmap would “bring government closer to the people” and significantly enhance service delivery.

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Through a combination of targeted youth employment programmes, educational reforms, expanded healthcare hiring, digital innovation, and ethical governance reforms, President Ramaphosa’s 2025/2026 Budget Vote paints a picture of a government that is not only aware of the scale of South Africa’s challenges—but also intent on building enduring solutions that create hope, dignity, and opportunity for millions.