Cape town: Employment and Labour Minister Nomakhosazana Meth has announced a R350 million commitment towards a government and business partnership aimed at placing 130,000 young people into learning and employment opportunities.
According to South African Government News Agency, Minister Meth delivered the Department of Employment and Labour's Budget Vote 31 speech in Parliament, emphasizing the urgent need to address South Africa's unemployment crisis. The intervention is part of intensified efforts to tackle the country's worsening unemployment situation, as highlighted by the latest Statistics South Africa (STATS SA) report. The report indicates that 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, with over eight million South Africans currently unemployed.
Minister Meth highlighted youth unemployment as one of the country's most pressing challenges, with nearly 46% of young people between the ages of 15 and 34 currently unemployed. This underscores the urgent need for accelerated economic growth, targeted labour market interventions, and large-scale youth employment opportunities. The government has declared 2026 as 'The Year of Putting Young South Africans to Work,' in honor of the 1976 Youth and the commemoration of the Youth Uprising Golden Jubilee.
To support these initiatives, an additional R95 million has been committed to the Industrial Development Corporation (IDC) to back Youth Employment Innovation Projects, which aim to place 7,000 young people into productive economic activities.
The Labour Activation Programme is undergoing a revamp to better address the unemployment crisis. The strategy now focuses on three pillars: improving labour market absorption, strengthening workplace experience, and supporting enterprise-led job creation. These include demand-led skills development, internships and work-integrated learning opportunities, and support for Micro, Small, and Medium Enterprises (MSMEs) through blended finance mechanisms.
Minister Meth announced plans to recruit 200,000 unemployed people during the current financial year through targeted labour market interventions, with 70% of opportunities directed towards the youth. Over the Medium-Term Expenditure Framework (MTEF) period, the government aims to support a total of 605,000 beneficiaries.
For the 2026/27 financial year, the Department of Employment and Labour has been allocated R4.578 billion, marking a 10.2% increase from the previous financial year. Minister Meth urged employers to partner with the government to create opportunities for young South Africans, either to help them complete their studies or gain first-time work experience through internships.