Govt Urges ‘Whole-of-Society’ Push to Tackle Youth Unemployment in Fourth Year of PYEI

Deputy Minister in the Presidency, Nonceba Mhlauli, has called for a bold, integrated national response to youth unemployment, warning that fragmented efforts will fail to equip young South Africans for a rapidly transforming world of work.

Speaking at the fourth anniversary of the Presidential Youth Employment Initiative (PYEI) hosted at the University of the Western Cape (UWC), Mhlauli outlined a forward-looking vision that places collaboration between government, educational institutions and the private sector at the centre of economic inclusion for young people.

Her remarks come against the backdrop of South Africa's persistently high youth unemployment rate—one of the highest globally—with millions of young people aged 15 to 34 remaining outside employment, education or training (NEET). This demographic accounts for more than half of the country's working-age population, making their economic participation critical to long-term growth and stability.

A Labour Market in Transition

Mhlauli stressed that structural shifts in the global economy—driven by rapid technological change, digital transformation, and evolving global value chains—are fundamentally altering the nature of work.

"The world of work is undergoing profound change. Many of the roles that young people will occupy in the future do not yet exist," she said. "At the same time, existing jobs are evolving or disappearing. This demands a complete rethink of how we prepare young people for economic participation."

She noted that traditional education-to-employment pathways are increasingly misaligned with labour market realities, creating a growing mismatch between available skills and employer demand. As automation and digitalisation accelerate, adaptability, digital literacy and continuous learning are becoming essential competencies.

Youth Exclusion Carries Systemic Risks

Mhlauli warned that continued exclusion of young people from the economy carries far-reaching consequences beyond individual hardship.

"When young people are locked out of the economy, the effects ripple across generations. Households become more vulnerable, communities face instability, and national economic growth is constrained," she said.

Conversely, she highlighted that integrating youth into productive economic activity leads to measurable gains in productivity, innovation, and social cohesion—key pillars for building a resilient and inclusive economy.

PYEI: A Coordinated National Platform

Launched under the Presidency, the Presidential Youth Employment Initiative represents government's flagship response to the youth unemployment crisis. Mhlauli emphasized that the PYEI is not a single programme, but a comprehensive platform designed to unify multiple interventions under a shared strategic framework.

"It aligns public sector opportunities, private sector participation, and institutional support to ensure that young people are not left behind," she said.

Since its inception, the initiative has facilitated millions of opportunities through the Presidential Youth Employment Stimulus (PYES), including work placements, internships, and skills development programmes across sectors such as education, digital services, community development, and entrepreneurship.

Partnerships as the Engine of Change

A central theme of Mhlauli's address was the importance of partnerships in driving sustainable employment outcomes.

• Government provides policy direction, funding, and coordination mechanisms.

• Educational institutions such as universities and TVET colleges equip young people with foundational and technical skills.

• Private sector employers offer real workplace exposure—widely regarded as the most critical component in bridging the experience gap.

"This collaborative model recognises that no single sector can resolve youth unemployment on its own. It requires a whole-of-society approach," Mhlauli said.

She added that strengthening alignment between these stakeholders will be essential in building a skills system that is responsive, flexible, and demand-driven.

Evidence of Impact at UWC

At the University of the Western Cape, the implementation of PYES-linked programmes over the past four years has yielded tangible outcomes. Graduates participating in structured placements have successfully transitioned into various sectors, gaining not only employment but also practical skills, professional networks, and increased confidence.

"These outcomes demonstrate a simple but powerful truth—when young people are given an opportunity, they rise to the occasion," Mhlauli noted.

While exact figures were not disclosed during the event, institutional reports indicate that thousands of graduates nationally have benefited from similar pathways, with increasing absorption rates into both public and private sector roles.

Looking Ahead: Building a Future-Ready Workforce

Mhlauli concluded by reiterating government's commitment to reforming South Africa's skills development ecosystem to better match economic demand.

"We are working towards a system that is more agile, more inclusive, and better aligned with the realities of a changing economy," she said.

Policy analysts suggest that the next phase of the PYEI will likely focus on scaling digital skills training, expanding employer incentives, and strengthening data-driven matching systems to connect young people with opportunities more efficiently.

As South Africa confronts the dual challenge of high unemployment and economic transformation, the success of initiatives like the PYEI may prove crucial in determining whether the country can unlock the full potential of its youth dividend.