Nomakhosazana Meth has announced a R350 million investment aimed at creating learning and employment opportunities for young South Africans.
The funding forms part of a partnership between government and business that aims to place 130 000 young people into work opportunities, training programmes and workplace exposure initiatives.
Government Intensifies Fight Against Youth Unemployment
Speaking during the Department of Employment and Labour’s Budget Vote 31 speech in Parliament, Meth said South Africa’s unemployment crisis remains a major concern.
“The latest Statistics South Africa (STATS SA) report reminds us of a reality that South Africa's economic recovery is not translating into jobs,” the Minister said.
According to recent labour statistics, South Africa’s official unemployment rate increased from 31.4% in the fourth quarter of 2025 to 32.7% in the first quarter of 2026.
More than eight million South Africans are currently unemployed.
Meth said youth unemployment remains particularly severe, with nearly 46% of people aged between 15 and 34 unemployed.
“The crisis confronting young people between the ages of 15 and 34, is that unemployment remains critically high at nearly 46%, underscoring the urgent need for accelerated economic growth, targeted labour market interventions and large-scale youth employment opportunities.”
R350 Million To Support Youth Employment Opportunities
Government has declared 2026 as “The Year of Putting Young South Africans to Work, in Honour of the 1976 Youth and Commemoration of the Youth Uprising Golden Jubilee.”
Meth explained that the R350 million commitment will support collaboration between government, business, the Presidency and the National Pathway Management Network.
“To deepen these interventions, R350 million has been committed to the Government and Business Partnership, working with the Presidency and the National Pathway Management Network to place 130 000 young people, into learning opportunities, work exposure programmes and employment interventions,” she said.
An additional R95 million has also been allocated to the Industrial Development Corporation (IDC) for Youth Employment Innovation Projects.
These projects are expected to place 7 000 young people into productive economic activities.
Labour Activation Programme Revamped
The Labour Activation Programme is also being restructured to better address unemployment challenges in South Africa.
“The review of the Labour Activation Programme strategy, is now centred on three focused pillars aimed at improving labour market absorption, strengthening workplace experience and supporting enterprise-led job creation,” Meth said.
Skills Development And Workplace Experience
The first pillar will focus on demand-led skills development linked to scarce and critical skills needed in the economy.
The second pillar will prioritise internships and work-integrated learning opportunities for graduates and TVET students.
“This will include the placement of 20 000 TVET students in work-integrated learning (WIL), Chartered Financial Analysts (CFAs), chartered accountants, professional technicians and engineers, law students and health inspectors. In addition, we will train 10 000 youth on digital skills and 10 000 for driver's licence [training],” the Minister said.
The third pillar focuses on supporting Micro, Small and Medium Enterprises (MSMEs) through blended finance initiatives.
Government Targets 200 000 Jobs
Meth revealed that government plans to recruit 200 000 unemployed people during the current financial year through labour market interventions.
“Importantly, 70% of all opportunities will be directed towards the youth, reflecting a deliberate commitment to address the plight of unemployed young people,” she said.
Government aims to support 605 000 beneficiaries over the Medium-Term Expenditure Framework (MTEF) period.
The Minister also announced that R36.6 billion has been allocated to the Labour Activation Programme over the MTEF period.
“For the 2026/27 financial year, the Department of Employment and Labour has been allocated R4.578 billion (four billion, five hundred and seventy-eight million rand), representing a 10.2% (ten-point two percent) increase from the previous financial year,” Meth said.
Employers Encouraged To Support Youth Employment
Meth called on employers across South Africa to work with government in creating opportunities for young people.
“We call on all employers to partner with us and open opportunities to place young South Africans to either complete their studies or for first time work experience, through internships,” she said.
