President Cyril Ramaphosa says government investment and public employment programmes will help tackle South Africa's worsening jobs crisis,
Image: Supplied/GCIS
President Cyril Ramaphosa has acknowledged growing concern over youth unemployment, describing it as a major threat to South Africa's prosperity and social stability as joblessness continues to rise.
Ramaphosa delivered the Presidency's Budget Vote in the National Assembly on Tuesday afternoon.
Among other measures, he announced that the government will invest R1 trillion over the next three years to drive economic growth and create jobs.
“Over the next three years, the state will be investing R1 trillion in building and refurbishing roads, dams, schools, hospitals and clinics, as well as energy, logistics and transportation infrastructure,” he said on Tuesday.
However, after he delivered the budget vote, several MPs criticised him for failing to address some of the country's most pressing issues, including the soaring unemployment rate, particularly among young people.
Statistics South Africa recently revealed that the country's official unemployment rate increased to 32.7% in the first quarter of 2026, up from 31.4% in the final quarter of 2025, according to the latest Quarterly Labour Force Survey.
The economy lost 345,000 jobs during the three-month period, reducing the number of employed people to 16.8 million. At the same time, the number of unemployed South Africans increased by 301,000 to 8.1 million.
Youth unemployment continued to worsen, with the unemployment rate among people aged 15 to 34 rising to 45.8%.
The number of unemployed young people increased by 181,000 to 4.7 million, while employment among youth declined by 258,000 to 5.6 million.
Ramaphosa acknowledged concerns raised by MPs about youth unemployment.
“We recognise that unemployment among young people remains one of the greatest threats to our country's future prosperity and social stability.”
“As we create the favourable conditions under which investment can take place that creates jobs at scale, the Presidency has been centrally involved in undertaking mass public employment.”
He said the Presidential Employment Stimulus, coordinated through the Presidency, has created work and livelihood opportunities for more than 2.5 million unemployed South Africans.
“The Presidential Employment Stimulus continues to demonstrate that public support for employment is a vital part of our overall employment strategy and can create opportunities for meaningful work and create real social value in the process.”
President Cyril Ramaphosa has acknowledged that unemployment remains a major challenge in South Africa, but said the government is taking steps to create job opportunities.
Image: Supplied/GCIS
“Last year, the Basic Education Employment Initiative provided work experience for nearly 200,000 young people in schools across the country, with support also provided to social employment, the creative sector, metros and the National Youth Service.”
“The National Pathway Management Network continues to expand with more than 900,000 young people joining SA Youth mobi in the last year, increasing the number of young people on the platform to 5.7 million,” told MPs.
He said that while public employment programmes provide important opportunities, the government's ultimate objective is to create a growing economy capable of generating sustainable employment at scale.
“We must also appreciate the contribution of the social wage towards inclusive economic growth, social development and improved livelihoods.”
Ramaphosa said the government spends more than 60% of its budget, before interest costs, on the social wage.
“This is an investment in our people. Studies have shown that social grants have enabled beneficiaries to pursue diverse livelihoods, to start and sustain small businesses, to search for employment and to invest in a child's education.”
“Recipients of the Child Support Grant complete significantly more years of schooling and consistently achieve higher test scores at school.”
He said that of all the investments being made, the most enduring and impactful is the investment in children.
“The Presidency was centrally involved in developing the National Strategy to Accelerate Action for Children, which was approved by Cabinet in December 2025.”
“Central to this strategy is our mission to end child stunting. In line with the commitment made in SONA, we have established an inter-departmental task team and are setting up mechanisms to engage civil society, business and trade unions to address the issue of hunger and malnutrition.”
“This is taking place alongside the commitment of substantial new resources to ensure that every child benefits from early childhood development.”
“We want our children to have both the food and the intellectual stimulation to grow their brainpower and their bodies to full potential,” he added.
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