“The 2026 Public Economics Conference, opened by Finance Minister Enoch Godongwana, is tackling South Africa’s severe youth unemployment crisis, with rates exceeding 60% among those aged 15–24. The three-day event emphasizes data-driven solutions, evidence-based policy, and the role of technology in reshaping employment opportunities.”
Youth unemployment has long been one of South Africa’s most pressing economic and social challenges. On July 7–9, 2026, the Public Economics Conference (PEC) convened in Pretoria under the theme “Counting the Crisis: Data, Evidence and Solutions for Youth Unemployment in South Africa.” The conference brought together policymakers, academics, researchers, and civil society to address the structural drivers of unemployment and explore innovative solutions.
The Scale of the Crisis
According to Statistics South Africa’s Q1 2026 labour market data, the national unemployment rate stands at 32.7%. Among youth aged 15–24, unemployment is a staggering 60.9%, while for those aged 25–34, it is 40.6%. More than four in ten young South Africans are not in employment, education, or training (NEET). These figures underscore the urgency of the crisis and the need for targeted interventions.
Conference Objectives
The PEC aims to:
- Improve data collection on youth unemployment, including informal work and lived experiences.
- Evaluate existing employment interventions, such as learnerships, internships, and public works programs.
- Explore technological change, digital transformation, and artificial intelligence (AI) as both challenges and opportunities for the future of work.
- Strengthen public economics capacity, ensuring government and academia collaborate effectively on evidence-based policy.
Keynote and Leadership Engagement
The conference opened with a video message from Finance Minister Enoch Godongwana, followed by a dialogue between National Treasury Director-General Dr Duncan Pieterse and SARS Commissioner Dr Johnstone Makhubu. The keynote address was delivered by Dr Haroon Bhorat, a leading economist, who emphasized the importance of structural reforms and inclusive growth strategies.
Day 1: Understanding the Problem
The first day focused on labour market data and trends since 1994, highlighting persistent structural barriers such as:
- Skills mismatch between education outputs and labour market needs.
- Regional disparities, with rural youth facing higher unemployment.
- Informality, where many young people engage in precarious, unregulated work.
Sessions also examined how traditional data often misses the realities of informal employment and discouraged job seekers.
Day 2: Evaluating Interventions
The second day assessed the effectiveness of current employment programs. While initiatives like the Expanded Public Works Programme (EPWP) and youth wage subsidies have provided temporary relief, they have not significantly reduced long-term unemployment. Experts argued for scaling up entrepreneurship support, vocational training, and digital skills development to align with the evolving economy.
Day 3: Technology and the Future of Work
The final day explored how AI, automation, and digital platforms are reshaping employment. While these technologies risk displacing low-skilled jobs, they also create opportunities in sectors like fintech, e-commerce, and renewable energy. Policymakers emphasized the need for adaptive education systems and lifelong learning pathways to prepare youth for these changes.
Policy Recommendations Emerging from PEC
- Data-Driven Policy – Improve labour market statistics to capture informal work and NEET youth.
- Education Reform – Align curricula with industry needs, emphasizing STEM and digital literacy.
- Entrepreneurship Support – Expand access to finance, mentorship, and markets for young entrepreneurs.
- Public-Private Partnerships – Encourage collaboration between government, business, and academia.
- Technology Integration – Harness AI and digital tools to create new employment pathways.
Broader Economic Context
The youth unemployment crisis is not isolated. It intersects with macroeconomic challenges such as sluggish GDP growth, high inflation, and fiscal constraints. The Bureau for Economic Research recently noted deteriorating consumer confidence and rising producer inflation, further complicating the employment landscape.
Conclusion
The 2026 Public Economics Conference represents a pivotal moment in South Africa’s fight against youth unemployment. By combining rigorous data analysis, evidence-based interventions, and forward-looking strategies, the country aims to chart a path toward inclusive growth. Whether these discussions translate into effective policy remains to be seen, but the urgency of the crisis ensures that youth unemployment will remain at the forefront of South Africa’s economic agenda.
