South Africa’s jobs crisis deepened in the second quarter of 2025, with the national unemployment rate rising to 33.2%, up from 32.9% in the previous quarter. The new data leaves more than 8.4 million South Africans without work, underscoring the scale of the challenge facing policymakers, educators, and industry leaders as the economy struggles to absorb new entrants into the labour market.

Although the economy managed to create 19,000 new jobs, losses in key industries such as agriculture, finance, transport, and community services outweighed these gains. The persistence of structural weaknesses in the labour market is most visible among young people. The youth unemployment rate remains alarmingly high at 46.1%, with thousands more young South Africans joining the ranks of the jobless in recent months. Women continue to bear the brunt of joblessness, with an unemployment rate of 35.9%, compared with 31.0% for men.

Amid the bleak national picture, the Western Cape offers a rare bright spot. The province added nearly 70,000 jobs year-on-year, driven by growth in trade, agriculture, and transport. Its unemployment rate now stands at 21.1%, the lowest in the country, alongside the highest labour force participation rate at nearly 68%. Analysts say the Western Cape demonstrates the impact of focused economic strategy and investment in sectors with strong growth potential.

In response to rising unemployment and deepening skills mismatches, the government will launch a major reskilling initiative this week. Deputy President Paul Mashatile and Higher Education Deputy Minister Buti Manamela are set to unveil the Just Energy Transition Skills programme on August 29 in Johannesburg. The initiative will establish a JET Skills Desk, a National Skills Advisory Forum, and targeted Skills Development Zones (SDZs) designed to retrain workers and create pathways into the green economy.

The move is part of South Africa’s broader plan to prepare workers for opportunities in renewable energy, green technologies, and sustainable infrastructure industries expected to define the next decade. For communities affected by retrenchments in coal and traditional energy sectors, the programme promises a bridge into new employment opportunities aligned with the country’s climate commitments and growth agenda.

The challenge, however, is execution. South Africa has launched skills programmes before, but many have struggled with poor coordination, limited reach, and weak industry linkages. Experts argue that this initiative must be demand-led, with clear pathways into actual jobs, if it is to succeed in reducing unemployment and preventing further social strain.

As the unemployment rate edges higher, the stakes could not be greater. The choices made in the coming months particularly around skills development, inclusive participation, and regional economic investment will determine whether South Africa can shift from crisis management to building a sustainable and opportunity-rich labour market.

For now, the data tells a sobering story that the economy is still failing to create enough jobs, particularly for youth and women. But the promise of a skills-led just transition offers a rare moment of hope that, with urgency and resolve, South Africa can begin to close its most pressing gap between the skills people have, and the opportunities the economy demands.