How South Africa's fragmented education system is exacerbating youth unemployment

South Africa’s post-school education and training system remains “fragmented and uneven,” with too many young people locked out of opportunity, Minister of Higher Education and Training Buti Manamela said.

Skills taught at many institutions do not match the needs of the economy, underperformance is widespread, governance failures weaken delivery, and funding models remain unstable. Data on the system is incomplete, making it difficult to ensure a clear return on investment for students and taxpayers.

“After three decades of transformation, ten years since Fees Must Fall, and twenty years since our universities and colleges mergers, we must admit that progress has been uneven,” the minister said. “We must learn from the past, fix what is broken, and reimagine what is possible.”

Youth unemployment remains a critical issue. The number of unemployed individuals aged 15–34 rose by 39 000 to 4.9 million, while employed youth increased by 31 000 to 5.7 million, leaving the youth unemployment rate unchanged at 46.1%, said Statistics South Africa recently. Those aged 15 to 24 face the highest barriers to employment, with unemployment rates far exceeding older youth.

Over the past decade, youth unemployment has climbed sharply, from 36.9% in early 2015 to 46.1% in 2025, according to Statistics South Africa’s Quarterly Labour Force Survey. “Youth unemployment remains one of South Africa’s most pressing challenges,” the agency said.

Manamela said the department is structuring its work over three timelines. Over the next three months, the focus will be on stabilising NSFAS and establishing a sustainable student funding model, creating a PSET Reengineering Task Team to guide the system’s redesign, strengthening SETA oversight, and engaging with National Treasury on long-term funding solutions.

Three strategic projects will also launch: Skills to Work Transitions for young people not in employment, education or training; Career Choices (currently Khetha) for school learners; and Adult Literacy, targeting the four million South Africans who are functionally illiterate.

Over the next twelve months, the department will pilot autonomous colleges and new community education and training (CET) models, review the CET landscape, launch TVET curriculum pilots aligned with emerging industries, establish a national PSET database, roll out the NASCA as an alternative pathway for school leavers, complete legislative reviews, and accelerate infrastructure upgrades to improve campus safety.

Over the next four years, Manamela said, the focus will be on fully implementing a sustainable student funding model, consolidating SETA and CET reforms, driving digital learning across the system, institutionalising career guidance and lifelong learning pathways, deepening research and innovation capacity, strengthening industry partnerships, expanding South Africa’s presence on the continent and globally, and ensuring a measurable return on public investment.

 IOL