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South Africa’s Labour Market: Trends, Challenges and What It Means for Young People

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Introduction

South Africa’s labour market continues to face profound challenges — from job losses and stagnation in formal employment, to persistent youth unemployment and under-employment. The latest data from Stats SA’s “Work and labour force” publications reveal the state of play and invite us to reflect on how these trends affect young people, aspiring workers and the broader economy.


Key Trends from the Data

Here are some of the important findings:

  1. Formal non-agricultural employment shrinkingAccording to a recent release, employment in the formal non-agricultural sector decreased by about 80 000 (−0.8 %) in the second quarter of 2025, falling from 10.59 million in March to 10.51 million in June. Statistics South AfricaEarlier, the first quarter of 2025 saw a drop of 74 000 jobs (−0.7 %) in the same sector. Statistics South AfricaThese declines reflect that job creation remains weak, and losses continue to accumulate.

  2. Youth in the labour market facing high barriersOne article highlights that individuals aged 15-34 make up around 50.2 % of South Africa’s working-age population (approx. 20.9 million), and within that, the 15-24 age group (about 10.3 million) faces the highest barriers to entering the labour market. Statistics South AfricaWhat this means: the pipeline of young people seeking employment is large, but the opportunities to absorb them remain limited.

  3. Time-related under-employment and persistent gender gapsBeyond unemployment, many workers face under-employment — fewer work hours than they’d like or are available to them. Statistics South AfricaFurthermore, gender gaps remain entrenched in the labour market. For example, an article flagged that while the 2025 Women’s Month theme focused on “Building Resilient Economies for All,” women’s participation in leadership and the economy still shows sizeable gaps. Statistics South Africa

  4. Improved data systems on the wayTo better track and understand these trends, Stats SA plans to roll out a revamped questionnaire for its Quarterly Labour Force Survey (QLFS) in Q3 2025, aligning with updated international standards. Statistics South AfricaThis upgrade signals an intent to sharpen labour-market intelligence, which is welcome.


What These Trends Mean for Young People & Job Seekers

  • With formal employment falling, many young job-seekers will face fierce competition for fewer opportunities.

  • High barriers for the 15-24 age group means that early career entrants face a double disadvantage: large numbers entering and limited jobs available.

  • Under-employment means even those with jobs may struggle to get sufficient hours, income or progression — impacting stability and long-term planning.

  • Gender disparities suggest that women and young women in particular may face additional hurdles in accessing quality employment or leadership roles.

  • On the positive side: improved data collection and understanding of the labour market may help policy-makers, educators and employers craft more effective interventions.


Implications for Policy, Employers and Education Providers

  • Policy makers need to focus on targeted job-creation programmes, especially in sectors with growth potential, and ensure that youth employment receives prioritised support.

  • Employers should consider more flexible entry pathways for young workers and under-represented groups (including women), such as internships, apprenticeships or job-sharing.

  • Education and training providers must align programmes with labour-market demands, emphasise employability skills, and support transitions into the workforce (especially for younger cohorts).

  • Young people should build their skillsets, be proactive in seeking opportunities, and consider diverse pathways (entrepreneurship, gig economy, internships) rather than relying solely on traditional employment routes.


Conclusion

The labour-market data from Stats SA paint a sobering picture: job losses, high youth entry-barriers, under-employment and gender gaps. But they also offer insight — and, importantly, the promise of improved instrumentation (via the revamped QLFS) to track and respond to these challenges.

For young South Africans, the landscape is tough — but not without hope. By understanding the trends, aligning skills to demand, and leveraging alternative pathways, there’s scope to navigate the changing labour-market terrain.

Working together — policy-makers, educators, employers, job-seekers — we can push toward a labour market that is inclusive, dynamic and responsive.

This post is based on the “Work and labour force” category of Stats SA’s data-stories archive. Statistics South Afr

 
 
 

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