South African Unemployment in 2025: Statistics, Skills, Startups & Solutions

South Africa continues to grapple with significant unemployment challenges across various demographics in 2025. Despite some economic optimism, the country faces an uphill battle in reversing the persistent trend of joblessness. Economic growth is projected to range between 0.5% to 1.3% this year - well below the 2% annual growth required to stabilise the labour market. Without robust interventions, the country’s unemployment rate is expected to rise from 32.7% in 2024 to 33.2% in 2025, leaving an estimated 21.5 million people without work.

Key Unemployment Statistics

1. Overall Unemployment: The national unemployment rate is expected to reach 33.2% in 2025, continuing a worrying trend.
2. Female Unemployment: Women face disproportionately higher unemployment rates than men. In 2024, the female unemployment rate stood at 35.5%, compared to 30.4% for males. This disparity reflects deep-seated structural inequalities in the labour market.
3. Youth Unemployment: South Africa’s youth (aged 15-34) bear the brunt of joblessness, with an unemployment rate of 45.5% in early 2024. Among young university graduates, unemployment stood at 33.6%, indicating that approximately one in three young graduates struggled to find employment. Over a longer period, from 2008 to 2024, graduate unemployment has thus doubled.
4. Comparison Across Education Levels: The comparison across education levels reveals a concerning disparity in unemployment rates. Matric certificate holders face an unemployment rate of 34.5%, while those with less than a matric qualification experience an even higher rate of 39.1%. These figures emphasise the crucial role of higher education in improving employability, yet they also highlight inefficiencies within the education system in equipping graduates with skills that align with market demands.

Contributing Factors to High Unemployment

• Sluggish Economic Growth: With GDP growth projections well below the necessary 2% threshold, businesses are not expanding at a pace that supports large-scale job creation.
• Skill Mismatches: Many graduates enter the workforce with qualifications that do not align with market demands, leaving them ill-equipped for available job opportunities.
• Quality of Education: Disparities in education quality across regions contribute to employability challenges.
• Labour Market Saturation: Some fields are oversaturated, leading to increased competition for limited positions.
• Retirement Reality: South Africa faces a growing issue of older workers staying in the labour market due to financial insecurity. Only 6% of the population is on track to retire comfortably, forcing many to work beyond the traditional retirement age. According to Sanlam Corporate, the true retirement age is closer to 80, intensifying competition for jobs.
• Poverty Levels: With nearly half (49.2%) of the adult population living below the poverty line, the economic strain further compounds unemployment challenges.

Recommendations for Addressing Unemployment

1. Skills Development & Training: Education and training programmes must be aligned with industry needs to ensure graduates possess marketable skills. Collaboration between educational institutions and businesses is crucial.
2. Entrepreneurship Promotion: Encouraging and supporting entrepreneurship through funding, mentorship and training can empower individuals to create their own employment opportunities.
3. Targeted Youth Employment Programmes: Government and private sector initiatives must focus on creating internships, apprenticeships and entry-level job opportunities tailored for young job seekers.
4. Empowering Women in the Workforce: Policies should address gender disparities by promoting equal opportunities, closing pay gaps and fostering female entrepreneurship.
5. Retirement Planning & Workforce Transitioning: Implementing financial literacy programmes and structured transition plans for older workers can help mitigate the impact of delayed retirements on job availability for younger individuals.

AfraLead’s Role in Combating Unemployment

At AfraLead, we envision a South Africa where all women in the labour force are economically active and financially independent. We address unemployment through targeted skills development and professional training, preparing individuals for both employment and entrepreneurship. Our approach includes:

• Skills Development Programmes: Offering practical training to enhance employability.
• Entrepreneurial Support: Equipping individuals with the tools to start and sustain businesses.
• Mentorship & Leadership Training: Encouraging senior professionals to guide and create opportunities for younger generations.
• Advocating for Inclusive Work Environments: Promoting equal opportunities across age and gender lines.

We do not believe in discrimination based on age or gender; instead, we advocate for leveraging the expertise of senior professionals to mentor and open doors for younger job seekers. Through our commitment to economic empowerment, AfraLead strives to create lasting employment solutions that benefit individuals and the broader economy.

Conclusion

Unemployment remains one of South Africa’s most pressing issues, requiring a comprehensive and coordinated effort from the government, private sector and civil society. By investing in skills development, entrepreneurship and inclusive economic policies, the nation can move towards a more sustainable and equitable future and we, as AfraLead, embrace our role in this process.