South Africa's unemployment has tripled since 1994, reaching 12.6 million people, according to a new report from the Centre for Development and Enterprise. The report outlines four key priorities to address the crisis, emphasizing the need for growth and labour-intensive reforms. Without bold action, the country risks deepening social marginalisation.
South Africa faces the world's deepest unemployment crisis, with more than 12 million people seeking work but unable to find jobs. This catastrophe has shaped the lives of individuals, families, and communities, as detailed in a new report by the Centre for Development and Enterprise (CDE) titled 'South Africa’s Unemployment Catastrophe: A call for urgent action'.
Unemployment has surged from 3.7 million in 1994 to 12.6 million today, with 1,000 people joining the queue daily over the past 17 years. Less than four in 10 adults are employed, 20 percentage points below the average for similar income-level countries. Employment dropped from 46% of adults in 2008 to below 40% now. Youth unemployment exceeds 55% for those aged 15 to 34, and education plays a stark role: two-thirds of graduates secure jobs, while three-quarters without a matric certificate remain unemployed.
The crisis stems from stagnant growth and a non-labour-intensive economy. Between 2008 and 2025, the labour force grew 42%, but employment only 15%. Factors include the collapse of Eskom and Transnet, reckless fiscal policies inflating public wages, corruption draining billions, dysfunctional municipalities, and misguided industrial policies deterring investment.
Public programmes like the Expanded Public Works Programme offer temporary relief—creating 924,000 'work opportunities' annually, often lasting four months and below minimum wage—but they equate to far fewer full-time jobs and cannot scale nationally.
The CDE report proposes four reforms: first, make the labour market employment-friendly by extending probation periods, halting automatic bargaining council extensions, and easing labour broker restrictions, tested in a special economic zone. Second, fix the skills system by aligning Technical and Vocational Education and Training with business needs, expanding apprenticeships, and scrapping Sector Education and Training Authorities. Third, unleash small businesses through reduced red tape—an 'SME test' for regulations, bottom-up consultations, and private-sector finance channels. Fourth, support the informal economy by cutting licensing fees, reducing harassment, and improving urban access via planning and subsidies.
'A new social contract that recognises growth and employment as the twin pillars of national prosperity and stability' is essential, the report states. Raising growth to 4% annually could create 400,000 jobs yearly, potentially millions with labour-intensive reforms. Ann Bernstein, CDE executive director, warns that without leadership to confront vested interests, delays will erode hope and social fabric.