SA is sitting on a ticking demographic time bomb. The latest labour force figures from Stats SA paint a grim picture of an economy that is failing its youth and, in turn, threatening its future.
Statistician-general Risenga Maluleke’s revelation that 3.8 million young people are now not in employment, education, or training is more than a sobering economic statistic. It is a national emergency.
The broader picture looks grim. Unemployment stands at 32.9%, and rises to 43.1% when including those who’ve given up looking for work. The loss of 291,000 jobs in the first quarter of 2025, especially the 119,000 in construction, is particularly alarming.
A 2024 study by the University of Limpopo’s Sakiel Albert Monama and Ngoako Johannes Mokoele concluded that the persistent challenge of high youth unemployment has pushed SA’s economic development into a downward spiral towards underdevelopment and vulnerability. It also warned that subjecting young people to idleness also pushes them towards harmful pursuits like crime and drug and alcohol abuse. This “idle time” not only hampers individual development but also contributes to broader economic stagnation
The SA Human Rights Commission previously warned in the wake of the 2021 July riots that high unemployment creates a volatile environment that could lead to social unrest.
With finance minister Enoch Godongwana set to table a revised budget next week, we hope it will provide more than just numbers. It must offer concrete solutions to a crisis that has reached a boiling point.
According to the National Treasury’s estimates, every R1m spent on infrastructure yields R1.86m in domestic output and three jobs for those with a matric qualification.
The urgency to stimulate public infrastructure investment has never been clearer. It is, however, important to note that the problem runs deeper than any fiscal stimulus alone can fix.
Structural issues such as a failing public education system, the misalignment between skills and market demand, and an underperforming economy must be addressed, as they contribute to locking young people out of the workforce.
Government must take urgent steps to accelerate infrastructure spending to stimulate growth and jobs. It must also take steps to overhaul vocational training and education to empower youth with the skills the modern economy demands.
Importantly, it needs to create a conducive environment for entrepreneurship to thrive.
The private sector also needs to come to the party through youth employment initiatives, skills partnerships, and investment.
SA cannot afford to have millions of young people idle on the margins of society. This is a recipe for long-term social and economic instability. A generation without prospects risks falling into disillusionment, dependency or worse – despair.
The clock is ticking, and failure to act will condemn a generation to a lifetime of marginalisation, with consequences that will ripple for decades.
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