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Government pledges R350m to tackle youth unemployment crisis

Zuko Komisa

Image | Adobe Stock
  • Government has committed R350 million to a business partnership to place 130,000 young South Africans into jobs and training.
  • The intervention targets a worsening 32.7% national unemployment rate, which climbs to nearly 46% among youth.
  • The Department of Employment and Labour aims to create 200,000 jobs this financial year, reserving 70% for young people.

Employment and Labour Minister Nomakhosazana Meth has announced a R350 million public-private partnership to place 130,000 young people into jobs and training.

Speaking in Parliament, Meth stated the initiative is a direct response to South Africa’s worsening jobs crisis, where economic recovery is failing to generate employment.

The intervention follows the latest Stats SA data, which shows national unemployment rose to 32.7% in early 2026, leaving over eight million people jobless.

The crisis is worst among citizens aged 15 to 34, who face a staggering 46% unemployment rate. Honouring the 50th anniversary of the 1976 Youth Uprising, government has declared 2026 “The Year of Putting Young South Africans to Work.”

Beyond the core partnership, an additional R95 million will help the Industrial Development Corporation place 7,000 young people into economic opportunities.

The department is also restructuring its Labour Activation Programme with R36.6 billion over the medium term.

This revamped strategy will focus on high demand skills, funding for small businesses, and graduate internships including work placements for 20,000 TVET students, digital training for 10,000 youth, and driving lessons for another 10,000.

Backed by a 10.2% budget increase to R4.578 billion for 2026/27, the department aims to recruit 200,000 unemployed people this financial year, allocating 70% of these roles to the youth.

Minister Meth concluded by urging private employers to partner with the state by offering internships to first-time job seekers.

READ NEXT: The portal of possibility: Tshwane’s digital answer to youth unemployment

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