SA Commits R350 M to Create Jobs and Training Opportunities for 130,000 Youth

During her address, Minister Meth pointed to the latest Statistics South Africa (Stats SA) labour force data, which revealed a worsening unemployment situation.

South Africa's government has announced a major new investment aimed at tackling the country's deepening unemployment crisis, particularly among young people, with Employment and Labour Minister Nomakhosazana Meth unveiling a R350 million commitment to support youth employment and skills development initiatives.

Delivering the Department of Employment and Labour's Budget Vote 31 speech in Parliament on Tuesday, Meth said the funding forms part of a broader government and business partnership designed to place 130,000 young South Africans into learning programmes, workplace exposure opportunities and employment interventions.

The initiative comes amid rising unemployment levels and growing concern over the country's economic recovery failing to generate sufficient jobs.

Unemployment Crisis Remains Severe

During her address, Minister Meth pointed to the latest Statistics South Africa (Stats SA) labour force data, which revealed a worsening unemployment situation.

"The latest Statistics South Africa (STATS SA) report reminds us of a reality that South Africa's economic recovery is not translating into jobs," the Minister said.

South Africa's official unemployment rate increased from 31.4% in the fourth quarter of 2025 to 32.7% in the first quarter of 2026, leaving more than eight million South Africans unemployed.

The youth unemployment crisis remains particularly alarming.

"The crisis confronting young people between the ages of 15 and 34, is that unemployment remains critically high at nearly 46%, underscoring the urgent need for accelerated economic growth, targeted labour market interventions and large-scale youth employment opportunities," Meth said.

Analysts have repeatedly warned that persistently high youth unemployment poses significant risks to economic stability, social cohesion and long-term growth.

2026 Declared Year of Youth Employment

Government has officially declared 2026 as:

"The Year of Putting Young South Africans to Work, in Honour of the 1976 Youth and Commemoration of the Youth Uprising Golden Jubilee."

Officials say the declaration reflects government's commitment to prioritising youth employment, education and economic inclusion during the current financial year.

As part of this strategy, the R350 million commitment will support collaboration between government, business and the National Pathway Management Network under the Presidency.

"To deepen these interventions, R350 million has been committed to the Government and Business Partnership, working with the Presidency and the National Pathway Management Network to place 130,000 young people into learning opportunities, work exposure programmes and employment interventions," Meth announced.

The programme aims to improve labour market access for young people through practical work experience, internships, skills training and employment placement support.

Additional R95 Million for Youth Innovation Projects

The Minister also announced additional support for youth entrepreneurship and innovation through the Industrial Development Corporation (IDC).

Government has committed:

• R95 million towards Youth Employment Innovation Projects

• Targeting placement of 7,000 young people into productive economic activity

The projects are expected to focus on enterprise development, innovation-driven employment opportunities and support for emerging sectors of the economy.

Officials believe entrepreneurship and innovation will play a critical role in generating sustainable employment opportunities for young South Africans.

Labour Activation Programme Being Revamped

Meth revealed that the government is restructuring the Labour Activation Programme to better address South Africa's evolving labour market challenges.

"The review of the Labour Activation Programme strategy is now centred on three focused pillars aimed at improving labour market absorption, strengthening workplace experience and supporting enterprise-led job creation," she said.

Pillar One: Demand-Led Skills Development

The first pillar focuses on aligning training programmes with scarce and critical skills required by the economy.

Government aims to ensure that skills development initiatives directly respond to labour market demand and industry needs.

Pillar Two: Internships and Workplace Experience

The second pillar prioritises internships and work-integrated learning opportunities for graduates and students from Technical and Vocational Education and Training (TVET) institutions.

Key targets include:

• Placement of 20,000 TVET students in work-integrated learning programmes

• Opportunities for:

  • Chartered Financial Analysts (CFAs)

  • Chartered accountants

  • Professional technicians

  • Engineers

  • Law students

  • Health inspectors

In addition, government plans to:

• Train 10,000 youth in digital skills

• Provide driver's licence training for 10,000 young people

Officials say these programmes are intended to improve employability and provide practical experience required for labour market entry.

Pillar Three: Support for MSMEs

The third pillar focuses on supporting Micro, Small and Medium Enterprises (MSMEs) through blended finance mechanisms.

Government views MSMEs as critical drivers of job creation, entrepreneurship and economic growth, particularly in labour-intensive sectors.

Government Targets 200,000 Jobs This Financial Year

Meth said the Department of Employment and Labour aims to recruit 200,000 unemployed South Africans during the current financial year through targeted labour market interventions.

"Importantly, 70% of all opportunities will be directed towards the youth, reflecting a deliberate commitment to address the plight of unemployed young people," she stated.

Over the Medium-Term Expenditure Framework (MTEF) period, government plans to support a total of 605,000 beneficiaries through employment and skills development programmes.

Billions Allocated to Employment Programmes

The Minister revealed that government has allocated:

• R36.6 billion over the MTEF period for the Labour Activation Programme

• R4.578 billion to the Department of Employment and Labour for the 2026/27 financial year

This represents a 10.2% increase compared to the previous financial year.

The funding will support employment programmes, labour market interventions, training initiatives and youth development projects aimed at reducing unemployment and improving workforce participation.

Government Calls on Businesses to Partner in Youth Employment Drive

Meth concluded her address by urging businesses and employers to work closely with government to create more opportunities for young South Africans.

"We call on all employers to partner with us and open opportunities to place young South Africans to either complete their studies or for first time work experience, through internships," she said.

Officials believe stronger partnerships between government, the private sector and educational institutions will be essential for addressing South Africa's unemployment crisis and building a more inclusive economy.

Economic experts say the success of the initiative will depend on effective implementation, sustained private sector participation and the ability to connect training programmes with real employment opportunities.