Edition August 2026

South Africa's youth employment challenge cannot be solved by a single intervention, institution or policy. That was one of the clearest messages to emerge from the Government Technical Advisory Centre's (GTAC) 2026 Public Economics Conference, which brought together policymakers, economists, researchers, practitioners and students to explore one of the country's most pressing public policy challenges.

Held under the theme, "Counting the Crisis: Data, Evidence and Solutions for Youth Unemployment in South Africa," the three-day conference took delegates on a journey from understanding the problem, to evaluating policy responses and finally preparing for the future of work.

Opening the conference, GTAC Acting Head Ronette Engela set the tone by saying: "Good policy starts with a good understanding of the problem, before we jump to solutions we need to understand the nature of the challenge."

Finance Minister Enoch Godongwana described youth unemployment as a national challenge requiring coordinated action across government and society.

“Youth unemployment is not a concern for one department, institution or sector, it is a national challenge that requires a national response,” he said.

Looking beyond the unemployment rate

The conference challenged delegates to rethink long-held assumptions about South Africa's labour market.

Presentations from Statistics South Africa, SARS and leading researchers demonstrated that understanding employment requires multiple data sources. Together, these provide a richer picture of how young people move through the labour market and where policy interventions can have the greatest impact.

The keynote address by Professor Haroon Bhorat, Director, Development Policy Research Unit at the University of Cape Town encouraged delegates to look beyond headline unemployment figures. His analysis suggested that South Africa performs relatively well at creating formal sector jobs compared with many emerging economies, explaining that labour regulation and wage levels do not adequately explain the country's exceptionally high unemployment.

Instead, he argued that barriers preventing the growth of the informal economy deserve much greater policy attention.

"We are unable to close our labour market not through traditional mechanisms but because we have too few people in the informal economy."

The discussion was reinforced by presentations highlighting the scale and resilience of South Africa's informal economy. Speakers argued that millions of livelihoods remain poorly reflected in official statistics, underscoring the need for policies that recognise and support informal economic activity alongside formal employment.

From diagnosis to implementation

Having established a shared understanding of the challenge, the conference shifted its attention towards solutions.

A recurring theme throughout the second day was that South Africa's youth employment challenge cannot be addressed through isolated programmes alone. Delegates repeatedly emphasised the importance of stronger policy coordination, sustained economic growth and rigorous evaluation of existing interventions.

Professor Justin Visagie from the Southern Centre for Inequality Studies at the University of the Witwatersrand argued that discussions often focus too heavily on preparing young people for work while paying insufficient attention to whether the economy is creating enough jobs.

"We have this big gap between what we need from the formal economy and what it can realistically deliver," he said.

The conference also explored growing evidence on active labour market programmes, employment tax incentives and the role of social protection in supporting labour market participation. Rather than viewing interventions in isolation, speakers emphasised the need for policy coherence.

One of the conference's highlights was the discussion on the Basic Package of Support, an integrated approach that helps young people overcome multiple barriers to employment, including transport, work readiness, psychosocial support and access to opportunities.

Programme leaders from the Presidential Employment Stimulus, Harambee, the Presidential Youth Employment Intervention and YearBeyond shared lessons on implementation, scaling and supporting young people into sustainable livelihoods.

Preparing for the future of work

The conference concluded by exploring how artificial intelligence, automation and digital innovation are reshaping the global labour market.

Drawing on different research, speakers argued that success in this changing environment will depend on continuous learning and developing both technical and social-emotional capabilities.

Dr Hannah Liepmann, a researcher from the International Labour Organisation, explained that technology is more likely to transform jobs than eliminate them altogether.

“Most jobs will be transformed by technology rather than made redundant,” she said, adding that employers are increasingly seeking workers with well-rounded and adaptable skills profiles.

Panellists stressed that South Africa's response to rapid technological change must go beyond digital skills training. They emphasised the importance of fostering adaptability, critical thinking and problem-solving abilities, while also ensuring affordable and equitable access to digital infrastructure.

Hanlie de Bod-Leaf, Chief Information Officer of Harambee reinforced this view, highlighting the urgent need for skills development that extends beyond technical competencies.

A shared evidence base for better policy

Across three days, the conference demonstrated that meaningful progress requires coordinated action across economic policy, education, labour market institutions and social support.

The overarching message was clear: solving youth unemployment begins with understanding it properly. By grounding policy in evidence, evaluating what works and preparing young people for an evolving economy, South Africa will be better positioned to expand opportunities for the next generation. ❖