How Western Cape employers can tackle youth unemployment

Lilita Gcwabe|Published

Youth unemployment continues to be a pressing challenge in South Africa, with national rates climbing from 36.9% in 2015 to 46.1% in 2025.

In the Western Cape, where economic growth has outpaced national trends, provincial leaders are working to connect young job seekers with real opportunities and ensure that growth translates into meaningful employment.

The province recorded 1.4% economic growth in 2025, while unemployment declined to 18.1%, the lowest in the country. Key sectors such as agriculture, tourism, and business process outsourcing have contributed to this growth, with the latter now accounting for two-thirds of national jobs in the sector.

Business process outsourcing (BPO), which includes services such as call centres and customer support handled for local and international companies, has emerged as a key entry point for young job seekers due to its demand for entry-level skills and training opportunities.

Despite this, it remains a concern. Nationally, the rate increased from 36.9% in 2015 to 46.1% in 2025. In the Western Cape, more than 500,000 young people are registered on SA Youth, reflecting a significant pool of job seekers.

On Tuesday, Harambee Youth Employment Accelerator, in partnership with the Western Cape Department of Economic Development and Tourism (DEDT), hosted the SA Youth Employer Breakfast at Makers Landing.

The event brought together over 130 employers, government representatives, and sector leaders to explore pathways for the youth into the labour market and discuss strategies for building an inclusive, future-ready workforce.

The breakfast came against the backdrop of the province’s Growth for Jobs Strategy (G4J), which guides initiatives across sectors such as agriculture, technology, and business process outsourcing industries identified as key gateways for young people entering the workforce.

DEDT’s 2026/27 budget includes R83.9 million for skills development and innovation, with programmes aimed at BPO and tech-sector skills, transport-sector training, and entry-level opportunities for youth.

In his keynote address, Deputy Director-General of the DEDT Rashid Toefy urged employers to “hire differently, collaborate with others, share learnings, and measure your outcomes”.

He stressed that addressing youth unemployment requires coordinated action between the government, business, and civil society.

He added that youth employment is not just a policy problem but a system-wide challenge that needs leadership across sectors.

Harambee CEO Kasthuri Soni highlighted that purpose and profit are not mutually exclusive, encouraging employers to view hiring young people as a strategic investment rather than charity.

The breakfast panel, with industry leaders including former CEO of the V&A Waterfront David Green, General Manager at Ucademy Christel Lategan, Development Facilitator at Ucademy Tracy van Aswegen, and Retail Manager at Table Mountain Aerial Cableway Craig Nothnagel, reinforced that investing in young talent strengthens businesses, communities, and the economy.

More than 500,000 young people in the Western Cape are registered on SA Youth, providing employers access to a significant pool of entry-level talent ready to work and gain experience.

Officials said the province aims to link skills development directly to labour demand and to create entry-level roles, apprenticeships, and internships that give young people practical experience and career pathways.

The event underscored the provincial government’s approach to tackling youth unemployment: aligning policy, skills programmes, and employer engagement to ensure growth is inclusive.

DEDT emphasised that youth employment is central to the province’s economic strategy and that collaboration across sectors is essential to creating sustainable opportunities for the next generation.

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Lilita Gcwabe
iol.co.za

Lilita Gcwabe
Author: Lilita Gcwabe

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