The Department of Higher Education and Training says its programmes track labour demand through reports and SETA research, but critics say rising joblessness shows a widening gap.
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South Africa’s widening unemployment crisis has reignited scrutiny over whether government skills programmes are delivering real economic outcomes, with Parliament, political parties, and labour stakeholders questioning the effectiveness of post-school education and training systems as joblessness continues to rise.
This comes after MK Party MP Visvin Reddy asked the Minister of Higher Education and Training Buti Manamela whether the department had assessed the impact of rising youth unemployment on post-school education programmes, and whether Technical and Vocational Education and Training (TVET) colleges and Sector Education and Training Authorities (SETAs) are aligned to actual labour market absorption capacity.
In response, the Department of Higher Education and Training (DHET) said it relies on labour market intelligence tools, including the Skills Supply and Demand (SSD) report and NEET data, to track trends and guide planning.
“The SSD report provides an overview of the skills supply and demand in South Africa,” the department said, adding that it assesses demographic trends, labour force participation and education patterns to identify skills imbalances.
It said understanding these dynamics helps align training systems with economic needs, stating that “the interaction between supply and demand provides the basis for identifying signals regarding the nature and extent of the skills imbalances facing South Africa.”
The department added that SETAs are required to conduct labour market research and tracer studies to determine whether beneficiaries transition into employment or entrepreneurship, while sector skills plans are designed to respond to scarce and critical skills needs.
However, it stressed that SETAs do not create jobs directly, but fund workplace-based learning programmes such as learnerships, internships and apprenticeships.
On accountability, the department said consequence management is applied only where funds are found to have been misused, in line with legislative frameworks.
The TVET branch said government has introduced the Dual Artisan Training System through Centres of Specialisation to strengthen industry-led training aligned to labour demand.
Despite these interventions, the labour market continues to weaken.
Statistics South Africa reported that unemployment rose to 32.7% in the first quarter of 2026, with 345,000 jobs lost and youth unemployment remaining above 45%.
According to the Quarterly Labour Force Survey (QLFS) for the first quarter of 2026, the number of employed people fell by 345,000 to 16,8 million, while the number of unemployed rose by 301,000 to 8,1 million compared with the last quarter of 2025.
The survey showed that most job losses occurred in the services and construction sectors, while employment in manufacturing, mining, and agriculture showed slight improvements.
This, according to Stat SA, resulted in a decrease of 44,000 (or -0,2%) in the labour force during the same period.
"In the same period, discouraged job-seekers increased by 178 000 to 3,9 million, other available job-seekers increased by 55 000 to 910 000, and unavailable job-seekers increased by 6 000 to 49 000, resulting in a total net increase of 240 000 to 4,9 million in the potential labour force population (i.e. persons who were available but not seeking or unavailable but seeking), " Stat SA said.
Minister of Employment and Labour Nomakhosazana Meth described the figures as “deeply concerning,” noting that young people, women and vulnerable groups remain the most affected.
“The Department notes with concern the increase in the official unemployment rate to 32,7%, up from 31,4% in the previous quarter,” Meth said, adding that unemployment reflects “a social challenge affecting all and the future aspirations of young people.”
She said government is intensifying interventions including the Labour Activation Programme and the Presidential Youth Employment Initiative, while strengthening partnerships with the private sector and civil society.
But outside government, frustration is growing. The National Youth Development Agency (NYDA) said unemployment has become a defining crisis of exclusion, with Chairperson Dr Sunshine Myende warning that young people are “tired of speeches” and demanding urgent action.
“The struggle today is against unemployment. The struggle today is against poverty. The struggle today is against inequality,” she said.
Opposition parties have also escalated criticism of government policy outcomes.
The Economic Freedom Fighters (EFF) said the latest data confirms “economic collapse,” arguing that millions remain unemployed while inequality deepens.
The Democratic Alliance (DA) called for the dissolution of SETAs and the National Skills Fund, saying billions are being wasted while TVET colleges remain under-resourced and unable to meet demand.
ActionSA blamed government failure for rising unemployment and called for decisive political accountability, while Build One South Africa (BOSA) said the crisis reflects structural economic failure and policy stagnation.
The GOOD Party warned that rising unemployment is worsening poverty and placing pressure on households already struggling with basic needs.
Amid growing concern over weak job creation, President Cyril Ramaphosa has announced a R1 trillion infrastructure investment programme aimed at accelerating economic recovery and addressing unemployment through large-scale public investment.
Speaking at the South Africa Infrastructure Investment Summit in Cape Town this week, Ramaphosa said the economy is still failing to convert growth into jobs despite recent stability.
“We have recorded four consecutive quarters of growth into early 2026, although we are yet to see this translate into a meaningful rise in employment,” Ramaphosa said.
He said the infrastructure drive over the next three years will focus on transport, energy, water systems and logistics, designed to stimulate labour-intensive sectors and support job creation.
“These commitments represent factories being built, renewable energy projects being connected to the grid, logistics corridors being modernised, jobs being created, and confidence being restored,” he said.
Ramaphosa added that reforms in energy and logistics, including restructuring Eskom and expanding private participation in rail and ports, are central to unlocking growth and reversing South Africa’s long-standing jobs crisis.
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