The government has declared 2026 the “Year of Putting Young South Africans to Work” and is launching a number of interventions aimed at tackling unemployment, particularly among young people, through a revised Labor Activation Program (LAP).
Minister of Employment and Labor Nomakhosazana Methe outlined the plans during a Government Communications and Information System (GCIS) Deep Dive media engagement, where she highlighted the department's budget vote priorities and efforts to address South Africa's persistently high unemployment rate.
The department has been allocated R4.578 billion for the 2026/27 financial year, representing a 10.2% increase from the previous year.
“it is important to note that We 'declared' 2026'Year of Putting Young South Africans to Work', in honor of the youth of 1976 and commemorating the golden jubilee of the Youth Uprising.
“We will be more aggressive in funding targeted youth-centric job creation initiatives, with 70% of these opportunities strictly limited to our youth,” Meth said.
According to Statistics South Africa, the country's official unemployment rate currently stands at 32.7%.
Meth described unemployment as more than an economic challenge, saying it has become a social justice issue that threatens social stability and undermines the dignity and future prospects of millions of youth.
The centerpiece of the government's intervention is a redesigned Labor Activation Programme, reorganized after a review found it was not achieving the scale and impact needed to respond effectively to the unemployment crisis.
The program is now based on three pillars: workplace-integrated learning and placement, demand-based skills training, and support for small enterprises.
The first pillar focuses on placing graduates, TVET students and other job seekers in workplaces, especially those who require practical training before qualifying.
Meth said many students are stuck in the “missing middle” category, who have completed their studies but are unable to graduate because they are unable to secure workplace placement.
“The issue of being linked to going to universities, even though in other economies you see people who go to TVET are the same people who are taking over the economy,” he said.
He pointed out that many students complete theoretical studies but are unable to enter the labor market because they still need workplace-integrated learning.
“We have chosen this as a stopgap and decided that we will use this programme, labor activation, to identify them and keep them in numbers, so that at least we can help them graduate,” the minister said.
The government plans to hire 20,000 TVET students and other learners requiring practical workplace experience, including trainee engineers, law graduates, health inspectors, chartered accountants and chartered financial analysts.
The second pillar focuses on demand-led skills training in line with labor market needs.
Meth said the government has moved away from simply training people without considering whether jobs exist in those sectors.
“We are saying that we will only partner with those credible and reliable training providers in the public sector and institutions that are providing training, and also especially with employers, but will focus on demand-based skills, skills that the labor market needs, so that once you are trained on that skill, there is no discussion about where you will go, because the market is already ready for you,” she said.
As part of this effort, the department plans to train 10,000 youth in digital skills after identifying around 149,000 opportunities in the digital economy.
“On the issue of AI digital technologies, we don't have that skill to be successful. It's a skill that we need,” Meth said.
The department will also fund driving licenses for 10,000 young people, removing a major barrier to entry into the labor market.
Many entry-level positions require a driver's license, making it difficult for unemployed youth to access opportunities, Meth said.
The third pillar focuses on supporting small enterprises and the informal economy.
Meth said small businesses have the potential to create jobs but they face challenges including limited access to finance, crime and inadequate municipal support.
“If we want to see jobs as a department of employment and labour, we must have a program that supports the informal sector,” he said.
Overall, the government aims to create 200,000 opportunities during the current financial year through the Labor Activation Program and related interventions.
Seventy percent of these opportunities have been reserved for the youth.
Additionally, the Department has committed R350 million through its partnership with the Presidency and the National Pathway Management Network to employ 130,000 youth in learning opportunities, performance programs and employment interventions.
Meth called on employers to work with the government to provide internships and workplace experience opportunities.
“It cannot be business as usual with so many unemployed South Africans,” he said.
The Minister encouraged employers to make greater use of Employment Service South Africa (ESSA), the government's online recruitment platform, which contains profiles of millions of job seekers.
“Employers must access the database. It is an online system, which can be accessed through www.labour.gov.sa To recruit directly and work with the unemployed, whether they require chefs, waiters, drivers, plumbers, artisans, etc.,” she said.
Meth emphasized that while government programs can help improve employability and create pathways to work, long-term success ultimately depends on broader economic growth and strong private sector job creation.
“We're still waiting patiently, but we're very eager to see the economy grow, for the economy to absorb the labor force,” he said. – SAnews.gov.za