If you’ve graduated with a degree that can land a job in finance, you are likely on a path to a stable and well-paying career. But if you are one of the nearly 4 million young people between the ages of 15 and 24 in South Africa who are unemployed, out of school or not in any training programme, income-earning opportunities are slim. This lack of opportunity has a devastating effect: continued unemployment leads to financial hardship, worsening mental health, exposure to crime and violence, and social isolation.
Adding to the problem is that entry-level roles in finance & business services, wholesale & retail trade and construction that traditionally absorbed semi-skilled workers are dwindling — one million fewer jobs in 2024 to be exact. Since 2008, the share of youth employed in the formal economy has dropped from 44% to 34%, coupled with stagnation and job cuts in labour-absorbing industries.
Beyond high-skill industries, several sectors with strong growth potential and accessible entry pathways have been identified by the Presidential Youth Employment Intervention (PYEI) as priority areas for youth employment, including the automotive industry, agriculture, social services, digital and technology, and installation, repair and maintenance.
Training people for jobs in these sectors is what demand-led skilling is all about. This approach focuses on aligning skills development with the needs of industries and the labour market, complemented with offerings that improve the employability of young people, especially those living in economic deserts — small towns and rural areas where income-earning opportunities are limited.
Matching skills to local demand
Recognised as one of the most promising approaches to addressing youth unemployment, demand-led skilling has been adopted and championed by the Presidency. It’s a key component of a national strategy to reduce youth unemployment by 10–20% by 2030 through the Presidential Youth Employment Intervention (PYEI). But for it to have real punch, it must work well at a hyperlocal level, especially in economic deserts.
Skills training must align with local realities. For instance, barista training makes little sense in towns without a demand for coffee shops, just as horticulture struggles where water is scarce. We have seen solar installation programmes thrive in sun-drenched regions, yet stall in South Africa’s wettest, most overcast areas. Demand-led only works if it’s locally rooted.
There are tangible, real-world examples of demand-led skilling making a difference. In Gqeberha, for young people not in education, employment or training, the most accessible pathways to economic inclusion are through woodwork and sewing. This is rooted in the city’s deep industrial legacy, furniture manufacturing, boat building, automotive assembly, and textiles (especially uniforms and protective wear). Young people are being trained in carpentry, furniture making, restoration, and industrial and domestic needlework, skills that connect directly to existing local factories or enable entrepreneurial livelihoods.
In KwaLanga, barista training is opening doors for young people into Cape Town’s coffee industry. Meanwhile in rural Bulungula, youth are being equipped with practical business skills in poultry farming. These are not generic skills programmes they are anchored in local opportunities.
Beyond traditional profit-generating work, there is also demand for work that adds social value through the Social Employment Fund and the National Youth Service. From food gardens to cleaning public spaces and delivering after-school programmes, this work matters to communities and empowers young people. They are an investment in the social fabric, building resilience, restoring worth, and reminding us that some of the most valuable work can’t be measured in rands and cents, but in lives strengthened, communities held, and futures made possible.
This is what demand-led skilling looks like: responsive, rooted, and enabling real transitions into work and economic activity.
Shoring up our systems
Young people with new skills need to apply and test what they have learnt in a work setting to improve their craft and their employability. This is why work-integrated learning is a cornerstone of demand-led vocational pathways, especially in hyperlocal contexts. It enables the practical experience required to secure employment.
Community-based skills centres that offer short-term programmes for young people who are excluded from universities or TVET colleges, play a vital role in facilitating work-integrated learning placements with local businesses. But a demand-led approach can only succeed if employers are empowered to open their doors to apprenticeships or interns, if training leads somewhere tangible, and if young people are supported to take those final, often most challenging, steps into formal employment.
If we can align national intent with local realities, then we can unlock pathways that connect young people to meaningful and sustainable work.
Smangaliso Mbili is an innovation manager at DGMT, and Cornè Kritzinger is DGMT’s communications specialist.
The Sowetan originally published this op-ed on 14 October 2025.
