The services economy is the backbone of South Africa’s employment landscape, spanning from finance, business consulting, retail, tourism, call centres, and professional services. The Services SETA carries the mandate of developing skills for this wide-ranging sector, ensuring that the skills levy is invested into training programmes that align with the National Skills Development Plan 2030. Its role is to address unemployment, skills mismatches, and inequality by creating pathways for youth, women, and marginalised groups into meaningful employment.

The sector faces a paradox, on one hand, services have been one of the fastest-growing employers in South Africa, with banking, business process outsourcing (BPO), and tourism leading the way. On the other hand, rapid digitalisation and restructuring within the formal financial sector are leading to retrenchments. This tension leads to the first critical question,  how can South Africa align financial and business education with the evolving needs of the services economy to reduce skills mismatches? The answer lies in ensuring that curricula at universities, TVET colleges, and private training providers reflect the digital, entrepreneurial, and customer-focused realities of the modern services economy.

The services sector also offers fertile ground for small enterprises and cooperatives. Call centres, micro-finance providers, tourism operators, and business support consultancies have the potential to create thousands of jobs if properly supported. This raises the second question, what opportunities exist for SMEs and cooperatives in the services sector to create new employment for youth and women? Linking SMEs to market access, financial support, and mentorship is essential to scaling up job creation within the sector.

Retrenchments cannot be ignored, major banks restructure and digital-first models reduce traditional staffing needs, many workers are at risk of permanent displacement. This prompts the third question, with retrenchments in the formal financial sector, how can displaced workers be redeployed into fintech, entrepreneurship support, or advisory services for small businesses? Reskilling affected workers in digital literacy, financial technology, and SME advisory services, South Africa can ensure that talent is not lost but redirected to where it is needed most.

Companies such as Standard Bank, FirstRand, and international BPO operators illustrate both the opportunities and risks. They are pioneering digital banking and global outsourcing hubs in South Africa while simultaneously reducing traditional employment. The challenge lies in making sure no worker is left behind.

The services economy is a gateway to the future of work i aligned with demand-led training, entrepreneurship support, and inclusive policies, this sector can become the largest absorber of youth and women into the economy.