SA’s unemployment challenge driven by deeper structural failure, Manamela warns

Higher Education and Training Minister Buti Manamela has issued a stark warning that South Africa's unemployment challenge is being driven by a deeper structural failure—a "crisis of pathways" that is leaving millions of young people disconnected from both education and economic opportunity.

Delivering a keynote address at the National Education Summit held at the Gordon Institute of Business Science (GIBS) in Gauteng this week, the Minister called for the urgent creation of a coherent, end-to-end education-to-work pipeline that aligns early childhood development, schooling, and post-school training with the needs of the economy.

"Our crisis is not only unemployment [but] a crisis of pathways—a system that does not yet move young people efficiently from learning into earning, from potential into productivity, from aspiration into dignity," Manamela said.

A System Failing to Transition Youth into the Economy

At the centre of the Minister's concerns is the growing number of young people classified as NEET (Not in Employment, Education or Training)—currently estimated at 3.4 million.

He described this as more than a statistic, calling it a "lived reality" that reflects systemic fragmentation across the education and training landscape.

The core issue, according to Manamela, is that South Africa's education system still operates in silos:

• Early childhood development (ECD), schooling, and higher education are poorly integrated

• Skills development is not sufficiently aligned with labour market demand

• Many learners fall through the cracks during transitions between phases

"We must build a pipeline that is coherent from early childhood, through schooling, into post-school education and training, and ultimately into the economy," he stressed.

Early Childhood Development: Inequality Starts Before School

The Minister identified Early Childhood Development (ECD) as one of the most critical intervention points.

While government has expanded access—allocating R18.4 billion over the medium term and bringing an additional 300,000 children into early learning programmes—serious challenges remain.

According to the Thrive by Five Index, only 42% of children are developmentally on track by the age of five.

"This means inequality is not simply reproduced later in life—it is produced early," Manamela said, pointing to disparities in nutrition, stimulation, language development, and access to quality early learning.

The implication is clear: without stronger foundations, later interventions in schooling and higher education become less effective.

From Job Seekers to Job Creators

Manamela also highlighted the need to fundamentally rethink the purpose of education in a constrained labour market.

With the economy unable to absorb all graduates, the system must shift toward producing entrepreneurs rather than solely job seekers.

Progress has been made in this area:

• All 50 public TVET colleges now offer entrepreneurship programmes

• More than 47,000 students participated in these programmes in 2024

However, the Minister cautioned that training alone is insufficient.

"Entrepreneurship will not thrive in an economy that is structurally closed," he said, stressing the need for:

• Access to funding and financial support

• Market access for small businesses

• Mentorship and practical exposure

• Broader economic reforms to support enterprise growth

Closing the Skills Gap Through Vocational Training

Another major pressure point is the country's artisan skills shortage, which continues to constrain industrial growth.

South Africa requires approximately 30,000 artisans annually, but is currently producing only about 20,000.

To address this gap, government is expanding Centres of Specialisation, which form the backbone of its artisan development strategy.

Key targets include:

• 37,000 artisan registrations this year

• 29,000 qualified artisans annually within two years

• More than 200,000 work-based learning opportunities

"Vocational education is not a second choice—it is a central pillar of our development," Manamela said, calling for a shift toward a more unified and respected vocational system.

Funding Exists—But Fragmentation Undermines Impact

Despite significant public investment in education, the Minister acknowledged that outcomes remain uneven due to poor coordination and implementation challenges.

Current interventions include:

• NSFAS support for over 700,000 students

• Daily meals provided to nearly 10 million learners

Yet, delays in funding, administrative inefficiencies, and system breakdowns continue to disrupt the student experience.

"Our challenge is not a lack of programmes but fragmentation," Manamela said. "This is a system problem, and it requires a system response."

A Call for National Coordination

Manamela concluded with a strong appeal for multi-sector collaboration, urging government, business, labour, and civil society to work together to build a more integrated and responsive system.

"When systems fail and young people are left uncertain, we are not simply dealing with administrative issues—we are breaking a contract," he said.

The Minister stressed that South Africa already has the necessary plans, funding, and policy frameworks in place. The real challenge now lies in execution, accountability, and coordination.

Towards a Coherent Education-to-Work Pipeline

As youth unemployment remains one of South Africa's most pressing socio-economic challenges, the call for a unified education-to-work pipeline signals a shift toward systemic reform.

If successfully implemented, such a pipeline could:

• Reduce the number of young people falling out of the system

• Align skills development with economic demand

• Improve transitions from education into employment

• Unlock productivity and inclusive growth

But without urgent action, the "crisis of pathways" risks deepening—leaving another generation disconnected from opportunity.