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    Home » Youth Unemployment Climbs Despite Economic Growth
    ECONOMY

    Youth Unemployment Climbs Despite Economic Growth

    June 10, 2026
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    Budget Speech: South African students say trade policy is not a silver bullet for unemployment
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    Youth unemployment among South Africans aged 18 to 35 has risen marginally to 54.65%, according to the latest Quarterly Labour Force Survey data, as seasonal pressures, global economic instability, and a reduction in Public Employment Programmes combine to weigh on an already strained labour market.

    The figures are contained in Harambee Youth Employment Accelerator’s May 2026 edition of its Breaking Barriers quarterly report, which frames the data within a broader argument: that South Africa’s youth employment crisis will not be resolved by economic growth alone, and that a fundamental shift in how employers hire is now required.

    Harambee points to a structural disconnect that has persisted for nearly two decades. Despite modest economic expansion, growth has disproportionately created jobs for older workers, with the youth share of employment declining over time. The organisation notes that the South African economy is projected to grow by 1.6% in 2026, up from 1.4% in 2025, but argues that this trajectory will bypass young people unless private sector employers deliberately change their hiring behaviour.

    Central to Harambee’s proposed solution is the SA Youth platform, a digital labour market infrastructure that has grown to connect more than 5.1 million young work-seekers since its establishment. The platform has recorded over 2.3 million formal, self-employment, and public employment opportunities since 2011 and has become, in Harambee’s assessment, a critical source of real-time labour market intelligence. Two-thirds of registered users are women, and 72% attended no-fee paying schools — demographics that remain systematically underrepresented in formal employment. Women account for 69% of earning opportunities reported through SA Youth, compared to 42% of young women securing work in the broader labour market.

    The report identifies retail as the single largest formal employment entry point for young people, accounting for 40% of the 200,000 formal sector placements reported on the platform. McDonald’s is cited as an example of a retailer bucking the sector’s trend, creating over 2,000 learnerships in partnership with CATHSSETA over the next 12 months, with stated intent to absorb participants into permanent employment.

    A notable feature of the report is its focus on hiring signals. Harambee argues that the labour market currently over-relies on matric results and prior paid work experience — proxies that systematically exclude capable young people who have gained skills through unpaid work, self-employment, or public employment programmes. The SA Youth CV, launched last year, is designed to make these alternative signals legible to employers. More than 8,300 CVs have been downloaded to date, with over 170 employers using the tool, including Nando’s and Steers. Employers using inclusive screening tools such as behavioural assessments have seen up to a 50% increase in hires and a 5% to 6% increase in the inclusion of candidates without prior formal work experience.

    In the Global Business Services sector, a partnership between Harambee, Business Process Enabling South Africa, and the Department of Trade, Industry and Competition has resulted in 147,405 jobs created since 2018. Tourism employment grew 28% between 2022 and 2024. SA Youth also underpinned the Basic Education Employment Initiative, facilitating the hiring of over 1.1 million young people across five programme phases.

    The report also addresses self-employment, noting that 75,000 young people on the platform report self-employed activity, with 24% of those earning doing so outside formal employment. Harambee argues that South Africa’s persistent bias toward formal employment as the only legitimate measure of economic participation actively constrains youth entrepreneurship and must be addressed through both policy and attitudinal change.

    Fifty years after the 1976 Soweto uprising that gave rise to Youth Day, Harambee’s assessment is that political freedom has not translated into economic inclusion — and that closing that gap will require hiring systems, employer behaviour, and public support structures to operate at a scale and with an urgency that has not yet been achieved.

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