Ramaphosa Urges Business to Step Up on Youth Employment Crisis

The conference hall at the Sandton Convention Centre was filled with the who’s who of South African business. CEOs in tailored suits. HR directors with tablets. Entrepreneurs in smart casual. They had gathered for the annual Youth Employment Summit, a day of panels, presentations, and networking. The coffee was strong. The pastries were fresh. The mood was cautiously optimistic.

Then President Cyril Ramaphosa took the stage.

He did not smile. He did not crack a joke. He did not thank the sponsors. He walked to the podium, adjusted the microphone, and delivered a message that cut through the corporate niceties like a scalpel.

“The crisis of youth unemployment is not a statistic. It is a catastrophe. It is a ticking time bomb. And it is a failure—a collective failure of government, of business, of all of us—to prepare our young people for the future.”

The room went silent. The coffee cups stopped clinking. The pastries sat untouched.

Ramaphosa had come to Johannesburg not to celebrate progress but to sound an alarm. With South Africa’s youth unemployment rate hovering at an staggering 45%—and exceeding 60% for young people without a tertiary education—the president warned that the country was sitting on a “demographic time bomb” that could destabilize society for generations.

“Every day, 1,500 young people enter the labour market,” Ramaphosa said. “Every day, only 200 of them find formal employment. The rest are left to fend for themselves—in the informal economy, in crime, in despair. This is not sustainable. This is not acceptable. And it is not inevitable.”

The president’s address was both a diagnosis and a demand. The diagnosis: a serious mismatch between the skills taught in schools and universities and the actual needs of industries. The demand: that the business sector do more—much more—to bridge that gap.

“You have the resources. You have the expertise. You have the networks,” Ramaphosa said, looking directly at the assembled CEOs. “We need you to step up. Not as a favour. Not as corporate social responsibility. As a matter of survival. Your survival. Because you cannot have a functioning economy without a functioning workforce. And we cannot have a functioning workforce without your help.”

The Scale of the Crisis: 11 Million Young People Left Behind

The statistics are staggering. According to Statistics South Africa, there are approximately 11 million young people aged 15 to 34 in the country who are not in employment, education, or training (NEET). That is nearly half of all young people. They are not learning. They are not earning. They are not building skills or networks or hope.

“They are the lost generation,” said Dr. Phumzile Ndlovu, a labour economist at the University of the Witwatersrand. “Not lost because they are lazy or unmotivated. Lost because the system has failed them. The education system. The labour market. The economy. All of it.”

The causes of the crisis are complex and interconnected:

• A failing education system: Despite significant investment since 1994, South Africa’s basic education system ranks near the bottom of international comparisons. Functional literacy and numeracy rates are alarmingly low. The quality of teaching is uneven. Resources are scarce.
• A mismatch between skills and jobs: Even young people who complete matric or tertiary education often find that their qualifications do not match the needs of employers. There are too many graduates in the humanities and not enough in STEM (science, technology, engineering, and mathematics), artisanship, and technical fields.
• A shrinking formal economy: South Africa’s economy has grown at an average of just 1.5% per year over the past decade—far too slowly to absorb the millions of new entrants to the labour market. Sectors that traditionally employed large numbers of young people, such as mining, manufacturing, and retail, have shed jobs.
• Geographic mismatches: Many young people live in rural areas or townships far from economic hubs. Transport costs are high. Public transport is unreliable. Relocating to a city is expensive.
• Discrimination: Young Black job seekers, particularly those from townships and rural areas, face discrimination based on their appearance, their accent, and their address. Studies have shown that CVs with “Black-sounding” names receive far fewer callbacks than identical CVs with “White-sounding” names.
• Lack of work experience: Many employers demand experience even for entry-level positions. Young people cannot get experience without a job, and cannot get a job without experience. It is a catch-22.

“The problem is not that young people are unemployable,” said Ndlovu. “The problem is that the system is not designed to employ them. We have built a labour market that excludes the majority of our youth. That is a choice. And it is a choice we can change.”

The Skills Mismatch: What Employers Need vs. What Schools Teach

At the heart of Ramaphosa’s address was the skills mismatch. The president cited data from the Human Sciences Research Council (HSRC) showing that only 15% of young people entering the labour market have skills that are in high demand by employers.

“The other 85% are qualified for jobs that do not exist, or that are shrinking, or that pay poverty wages,” Ramaphosa said. “That is not their fault. It is our fault. We have not aligned our education system with the needs of the economy.”

The mismatch is stark:

Skills Employers Want	Skills Schools Teach
Digital literacy (coding, data analysis, AI)	Basic computer literacy (Microsoft Office)
Critical thinking and problem-solving	Rote memorisation and exam regurgitation
Communication and teamwork	Individual assignments and silent exams
Technical and vocational skills (plumbing, welding, electrical)	Academic subjects (history, geography, languages)
Adaptability and lifelong learning	Fixed curricula that change slowly

“We are preparing young people for a world that no longer exists,” said a tech industry CEO. “We need coders. We need data analysts. We need cybersecurity experts. Instead, we are churning out graduates with degrees in subjects that have not changed in 50 years. It is a tragedy.”

Ramaphosa called for a “fundamental rethink” of the education and training system, including:

• More technical and vocational education: Expanding the Technical and Vocational Education and Training (TVET) college system, which has been chronically underfunded and overlooked.
• Workplace-based learning: Requiring all tertiary students to complete internships or apprenticeships as part of their qualifications.
• Curriculum reform: Updating school and university curricula to reflect the needs of the digital economy.
• Career guidance: Providing better information to young people about which fields offer the best job prospects.

“Education is not an end in itself,” Ramaphosa said. “It is a means to an end. The end is a dignified life, a decent job, and the ability to contribute to society. If our education system is not delivering that, it is failing. And we cannot afford failure.”

The Role of Business: From CSR to Core Strategy

Ramaphosa’s message to business was clear: stop treating youth employment as a charitable activity and start treating it as a strategic imperative.

“For too long, business has seen youth employment as something to be addressed by corporate social responsibility programmes—a nice-to-have, a box to tick, a photograph to take,” he said. “That must change. Youth employment must become a core part of your business strategy. Your future workforce depends on it. Your future customers depend on it. Your future survival depends on it.”

The president outlined six concrete actions that business could take:

1. Invest in work-based learning: “Expand your internship, apprenticeship, and learnership programmes. Not token programmes—real programmes, with real training, real mentorship, and real pathways to permanent employment.”

2. Partner with TVET colleges: “Adopt a TVET college. Provide equipment, curriculum support, and guest lecturers. Hire graduates. Show young people that technical and vocational education is a viable path to a good job.”

3. Rethink entry requirements: “Stop demanding experience for entry-level positions. Stop using CV screening software that filters out young people without formal addresses. Give young people a chance. You might be surprised by what they can do.”

4. Invest in digital skills: “The digital economy is the future. Help young people acquire the skills they need to participate in it. Sponsor coding bootcamps. Provide free Wi-Fi in townships. Hire remote workers from rural areas.”

5. Support entrepreneurship: “Not every young person wants to work for someone else. Some want to start their own businesses. Help them. Provide mentorship, access to capital, and access to markets. Buy from young entrepreneurs.”

6. Advocate for policy change: “Use your voice to advocate for policies that support youth employment—better funding for education, more support for small businesses, and a simpler regulatory environment. Do not just complain about the government. Engage with it.”

The response from the business community was mixed. Some CEOs nodded enthusiastically. Others shifted uncomfortably in their seats. A few looked at their watches.

“We have heard similar calls before,” said a manufacturing executive. “The president is right that business must do more. But government must also do its part. We need a stable electricity supply. We need functioning ports and railways. We need a predictable regulatory environment. Without those things, we cannot grow. And without growth, we cannot hire.”

A retail CEO was more optimistic. “We have already expanded our learnership programme. We now have 5,000 young people in training. We plan to double that next year. It is not charity. It is good business. These young people are hungry. They are motivated. They are the future of our company.”

The Government’s Role: Walking the Talk

Ramaphosa acknowledged that government must also do more. He announced several new initiatives:

• The Youth Employment Service (YES) expansion: The YES programme, which subsidises internships for young people, will be expanded to reach an additional 500,000 young people over the next three years.
• The Presidential Youth Employment Intervention (PYEI): A R10 billion fund to support youth employment initiatives, including job creation programmes, entrepreneurship support, and skills development.
• The Digital Skills Fund: A new R2 billion fund to support digital skills training, including coding bootcamps, data analytics courses, and cybersecurity training.
• The National Career Advice Portal: A new online platform to provide young people with information about career options, training programmes, and job opportunities.

“These are not just promises,” Ramaphosa said. “These are commitments. Budgeted. Costed. Accountable. We will deliver.”

But the president also acknowledged that government cannot solve the crisis alone. “We need a whole-of-society approach,” he said. “Government, business, labour, civil society—all of us must work together. This is not a problem that any one sector can solve. It is a problem that we must solve together.”

The Youth Perspective: Voices from the Frontline

Outside the conference centre, a group of young protesters had gathered. They held placards reading “Jobs Now” and “Stop Talking, Start Hiring.” They chanted slogans and waved flags. A few had climbed onto the roof of a parked car.

“We are tired of speeches,” said one protester, a 23-year-old with a degree in marketing. “We have heard so many speeches. From the president. From the ministers. From the CEOs. They are always sorry. They always promise to do better. And nothing changes. I have been looking for work for two years. Two years. I have applied for 500 jobs. I have had three interviews. No one will hire me. A speech will not feed me. A speech will not pay my rent.”

Another protester, a 19-year-old who had dropped out of school in Grade 10, was even more disillusioned. “The president says we need skills. But how can we get skills if we cannot afford training? The TVET colleges are full. The private colleges are expensive. The online courses require data and devices. I have nothing. I am nothing. And no speech can change that.”

A young woman, a recent graduate in computer science, was more hopeful. “I am lucky,” she said. “I am in the YES programme. I have an internship at a tech company. I am learning. I am earning. I have a future. But I am the exception. Most of my friends are still at home, still waiting, still hoping. We need more programmes like YES. Many more.”

The protesters were not hostile to the president. They were not violent. They were just tired. Tired of waiting. Tired of hoping. Tired of being told that their futures were in someone else’s hands.

“We do not want handouts,” said the 23-year-old. “We want opportunities. We want a chance. We want to work. Is that too much to ask?”

The International Context: Learning from Others

South Africa is not alone in facing a youth employment crisis. Across the globe, young people are struggling to find work in the aftermath of the COVID-19 pandemic, the rise of automation, and the shift to a digital economy.

But some countries have done better than others:

• Germany: The country’s dual education system, which combines classroom learning with on-the-job training, has kept youth unemployment low even during economic downturns. Young people in Germany are typically placed in apprenticeships by age 16 and emerge with marketable skills and job offers.
• Rwanda: The government has invested heavily in digital skills training, including coding bootcamps and tech hubs. Rwanda now has one of the fastest-growing tech sectors in Africa.
• Vietnam: The country has focused on aligning its education system with the needs of foreign investors, including training young people in the skills required by factories and service centres.

“We have much to learn from these examples,” said Ramaphosa. “But we cannot simply copy them. We must adapt them to our own context. We must find South African solutions to South African problems.”

The Economic Imperative: Why Business Must Act

Ramaphosa ended his address with a plea to the business community—not just on moral grounds, but on economic grounds.

“Young people are not just a cost,” he said. “They are an asset. They are the future of your workforce. The future of your customer base. The future of your supply chain. If you neglect them today, you will pay the price tomorrow. Not in the distant future. Tomorrow.”

The president cited research showing that companies that invest in youth employment see:

• Higher productivity: Young workers are often more energetic, more adaptable, and more willing to learn new skills.
• Lower turnover: Young workers who are given opportunities to grow are more likely to stay with their employers.
• Greater innovation: Young people bring fresh perspectives and new ideas.
• Brand loyalty: Young workers who are treated well become brand ambassadors, spreading positive word-of-mouth to their peers.

“This is not a zero-sum game,” Ramaphosa said. “Investing in young people is not a cost. It is an investment. With a high return. And the return is not just financial. It is social. It is political. It is human.”

The Verdict: A Step Forward, Not a Solution

The president’s address was well-received by many in the audience. But it was also met with scepticism. Business leaders have heard similar calls before. Governments have made similar promises. And the crisis has only deepened.

“We need more than speeches,” said a labour union representative. “We need action. We need accountability. We need to see results. The president has set out a vision. Now he must deliver.”

A young activist who had been protesting outside listened to a recording of the speech on her phone. She nodded at some points. She shook her head at others.

“He said the right things,” she said. “But words are cheap. I have heard the right things before. I need to see the right things happen. Until then, I will be out here. With my placard. With my voice. With my hope. Because hope is all I have.”

The Final Word: A Generation Waiting

As the conference ended and the CEOs filed out, the protesters gathered their placards and prepared to leave. The sun was setting over Sandton. The sky was orange and pink. It could have been a beautiful evening.

But for 11 million young people, there was no beauty. There was only waiting. Waiting for a job. Waiting for a chance. Waiting for a future.

President Ramaphosa had spoken. The business leaders had listened. The promises had been made.

Now, the only question that mattered: Would anything change?

The generation that grew up in democratic South Africa—the born-frees, the children of hope—were still waiting.

They had been waiting for 30 years.

They could not wait much longer.

The Presidential Youth Employment Intervention will be formally launched on 1 May 2026. The YES programme expansion will begin in July 2026. The Digital Skills Fund is now accepting applications from training providers. For more information, visit the Department of Employment and Labour’s website.

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