Government Declares 2026 Year Of Putting Young South Africans To Work With Increased Funding

Employment and Labour Minister Nomakhosazana Meth outlined the plans during a Government Communication and Information System (GCIS) Deep Dive Media Engagement, where she unpacked the department's Budget Vote priorities and efforts to address South Africa's persistently high unemployment rate.

The department has been allocated R4.578bn for the 2026/27 financial year, representing a 10.2% increase from the previous year.

“It is important to note that we 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.

“We will be more aggressive in funding targeted youth-focused job creation initiatives, with a 70% of these opportunities strictly ring-fenced for our youth,” Meth said.

According to Statistics South Africa, the country's official unemployment rate currently stands at 32.7%.

Meth described unemployment as more than an economic challenge, saying it has become a social justice issue that threatens social stability and undermines the dignity and future prospects of millions of young people.

Redesigned programme

The centrepiece of government's intervention is a redesigned labour activation programme, which has been restructured following a review that found it was not achieving the scale and impact required to respond effectively to the unemployment crisis.

The programme now rests on three pillars: workplace-integrated learning and placement, demand-led skills training, and support for small enterprises.

The first pillar focuses on placing graduates, Tvet students and other work seekers in workplaces, particularly those who require practical training before they can qualify.

Meth said many students remain trapped in a "missing middle" category, having completed their studies but unable to graduate because they cannot secure workplace placements.

"The issue of being associated with going to universities, even though in other economies you see people who go to Tvet and be the ones who are holding the economy,” she said.

Securing workplace-integrated learning

She explained that many students complete theoretical studies but are unable to enter the labour market because they still need workplace-integrated learning.

“We have picked it up as a gap and decide we'll use this programme, labour activation, to identify those and place them in numbers, so that at least we can assist them to graduate,” the Minister said.

Government plans to place 20,000 Tvet students and other learners requiring practical workplace exposure, including trainee engineers, law graduates, health inspectors, chartered accountants and chartered financial analysts.

The second pillar focuses on demand-led skills training aligned with labour market needs.

Meth said government had moved away from simply training people without considering whether jobs existed in those sectors.

“We are saying we will only partner with those credible and reliable training providers from the public sector and the institutions that are providing training, and also employers, in particular, but focusing on demand-led skills, skills that are needed by the labour market, so that once you are trained on that skill, there is no discussion about where do you go, because already the market is ready for you,” she said.

Digital skills training

As part of this effort, the department plans to train 10,000 young people in digital skills after research identified approximately 149,000 opportunities in the digital economy.

“The issue of AI digital technologies, we don't have the success of that skill. It's a skill that we need,” Meth said.

The department will also fund driver's licences for 10,000 young people to remove a major barrier to entry into the labour market.

Meth noted that many entry-level positions require driver's licences, making it difficult for unemployed youth to access opportunities.

Small and informal businesses

The third pillar focuses on supporting small enterprises and the informal economy.

Meth said small businesses have the potential to create jobs but face challenges including limited access to finance, crime and inadequate municipal support.

“We must, if we want to see jobs as a department of employment and labour, have a programme that supports the informal sector,” she said.

Overall, government aims to create 200,000 opportunities during the current financial year through the labour activation programme and related interventions.

70% of these opportunities have been ring-fenced for young people.

In addition, the department has committed R350m through its partnership with the Presidency and the National Pathway Management Network to place 130,000 young people in learning opportunities, work exposure programmes and employment interventions.

Call for internships

Meth called on employers to work with government to provide internships and workplace experience opportunities.

“It cannot be business as usual to have so many unemployed South Africans,” she said.

Online recruitment platform

The Minister also encouraged employers to make greater use of Employment Services South Africa (Essa), government's online recruitment platform that contains millions of job seeker profiles.

“Employers must utilise the database. It's an online system, which can be accessed via www.labor.gov.sa to directly recruit and match with unemployed works, whether they require chefs, waiters, drivers, plumbers, artisans, etcetera,” she said.

Meth stressed that while government programmes can help improve employability and create pathways into work, long-term success ultimately depends on broader economic growth and stronger private sector job creation.

“We are still awaiting patiently, but we are very anxious for the economy to grow, for the economy to absorb the labour force," she said.