South Africa’s Youth Unemployment Crisis Deepens Surpassing Other Emerging Market Economies

According to Nkosinathi Mahlangu, Head of Youth Employment Portfolio at Momentum Group, this stark disparity underscores the serious and unique challenges facing South African youth, compared to their peers in other major developing economies.

"South Africa's youth are at a crossroads. Without urgent and coordinated action from the business community, government and society at large, the country risks losing an entire generation to chronic unemployment," says Mahlangu.

While high youth unemployment is a concern in many developing countries, Mahlangu finds that South Africa's rate is exacerbated by persistent inequality, limited job creation, and barriers to entrepreneurship, leaving millions of young people locked out of the formal economy, says Momentum Group.

He argues that South African youth are uniquely vulnerable to unemployment due to a combination of structural economic challenges, skills mismatches, as well as limited access to quality education and training, adds the company.

In addition to these challenges, young and upcoming South African entrepreneurs are now facing additional barriers due to recent US-imposed 30% tariffs, says the company.

"These tariffs threaten the competitiveness of local start-ups, many of which are youth-owned, by restricting export opportunities and stifling growth in sectors critical for job creation," Mahlangu adds. "Such trade measures risk further dampening entrepreneurial ambition at a time when youth-led innovation is crucial for economic recovery and growth."

Turning the tide on South Africa's youth unemployment crisis requires more than isolated efforts. He recommended that the issue demands bold collaboration and innovation across all sectors and that to truly address this crisis, a collaborative approach is needed. According to Momentum Group, practical strategies include:

• Expanding partnerships between corporates, educational institutions and government to align curricula with market needs.
• Scaling up skills development programmes focused on digital literacy, financial acumen and entrepreneurship.
• Increasing investment in youth incubators and accelerators to empower young innovators and job creators.
• Creating accessible pathways to internships, apprenticeships and on-the-job training, ensuring that academic learning translates into employability. 

Mahlangu believes that corporate South Africa holds a vital responsibility in reversing these trends. By investing in workplace readiness programmes, providing access to upskilling opportunities and supporting youth entrepreneurship, South African organisations can become a powerful catalyst for change, adds the company

"The private sector must step up with practical, scalable interventions; internships, apprenticeships, mentorships, as well as funding for youth-led enterprises, to help bridge the gap between academic training and real-world employment," he concludes.

For more information, visit www.momentumgroupltd.co.za. You can also follow Momentum Group Ltd on LinkedIn, X, Instagram or on TikTok.

*Image courtesy of contributor