By Nakampe Lekwadu
South Africa’s unemployment crisis is often described as a youth problem. But that diagnosis misses the deeper issue. The country does not simply have too many unemployed young people – it has an economy that is failing to absorb the talent it produces.
Every year, universities, universities of technology and Technical and Vocational Education and Training (TVET) colleges graduate thousands of engineers, scientists, agricultural specialists and technicians. Yet employers in sectors such as mining, manufacturing, chemicals and agriculture continue to report shortages of these very skills.
Both realities exist simultaneously, exposing a structural contradiction at the heart of South Africa’s labour market.
Rather than a simple skills mismatch, the country faces a systems failure. Labour market structures have not evolved to consistently transform first-time graduates into productive professionals. The critical question for policymakers and industry is no longer whether South Africa produces talent, but why that talent is not being effectively absorbed into the economy.
The challenge is becoming more urgent. According to the World Economic Forum’s Future of Jobs Report 2025, nearly 39% of core skills required across industries are expected to change by 2030 as economies adapt to technological innovation, climate change and industrial transformation. Skills shortages have already emerged as one of the biggest barriers to economic growth and competitiveness.
The shift towards Environmental, Social and Governance (ESG) principles further highlights this challenge. Climate change mitigation and adaptation are among the most transformative forces reshaping global labour markets. As industries transition towards greener production, demand for engineers, environmental scientists, technicians and other highly skilled professionals will continue to grow.
The success of any just transition therefore depends not only on policy and investment, but on whether countries can produce, retain and absorb the human capital required to sustain new industries.
Every industrial system is ultimately built on people.
Mining operations, manufacturing plants, agricultural value chains and infrastructure networks rely on engineers, scientists, technicians, environmental specialists and skilled operators. Without these professionals, even the largest investments in infrastructure and technology cannot deliver sustainable growth.
This is why the national conversation around a just transition must evolve.
A just transition cannot be achieved through legislation, funding or technological innovation alone. It will ultimately be measured by whether South Africa develops and retains the technical skills needed to support long-term economic transformation.
Currently, educational institutions, training providers and employers often operate independently rather than as an integrated system. Graduates complete their qualifications but frequently struggle to gain the practical workplace experience needed to secure permanent employment. At the same time, employers increasingly recruit experienced professionals, unintentionally excluding young graduates from entering the workforce.
The consequences extend well beyond unemployment.
Firstly, industries experience declining productivity as ageing technical workforces are not adequately replaced.
Secondly, prolonged youth unemployment creates lasting economic scars, reducing lifetime earnings and limiting future career opportunities.
Thirdly, South Africa loses valuable talent to countries with stronger graduate employment pathways, accelerating the continent’s growing brain drain.
Fourthly, industries become increasingly vulnerable as the pool of experienced professionals continues to shrink.
Finally, food security itself becomes more fragile. Agricultural productivity depends not only on rainfall and production, but also on chemical engineers, environmental scientists, laboratory specialists, logistics experts and agricultural technologists who ensure safe, efficient and resilient food systems.
Addressing these challenges requires a coordinated talent ecosystem rather than fragmented interventions.
Education institutions, industry, sector education authorities and employers must work together to strengthen work-integrated learning, graduate development programmes, mentorship opportunities and structured pathways from education into employment.
Encouragingly, examples of such collaboration are already emerging across South Africa’s industrial landscape. Partnerships between employers, universities, universities of technology, TVET colleges and sector bodies are helping strengthen graduate development and address scarce technical skills.
At Foskor, for instance, collaboration with higher education institutions and sector partners supports structured workplace development programmes designed to improve the transition from learning to meaningful employment.
Ultimately, sustainability is inseparable from human capability.
South Africa’s just transition will not be defined solely by the richness of its mineral resources, the scale of infrastructure investment or the strength of its policy framework. Its success will depend on whether the country can develop, retain and effectively absorb the engineers, scientists, technicians and specialists required to power a modern, inclusive and sustainable economy.
A truly just transition requires more than green policies and ambitious investment. It requires a just talent pipeline that ensures every qualified young South African has a fair opportunity to contribute to the country’s future.
