Youth Capital welcomes the continued investment in the Basic Education Employment Initiative (BEEI), South Africa’s largest programme targeting youth employment, which remains a critical entry point into the labour market for thousands of young people. The sustained allocation signals a commitment to public employment programmes that provide young people with income, experience and dignity.
The lack of conversations around alternative revenues highlights how the people of South Africa are bearing the brunt of the increase in the cost of living. ‘We are deeply concerned that budget measures such as the increased fuel levy will push the burden of adjustment onto already struggling South Africans, particularly young people, who are spending up to R1 000 a month just to look for work, according to our 2023 research, with transport being the biggest expense’, says Youth Capital’s Acting Project Lead Clotilde Angelucci.
Social protection and jobs
Minister Godongwana made a reference to a possible job-seeker allowance and other interventions to replace the Social Relief of Distress (SRD) grant. ‘We caution against setting up a false choice between cash grants and job creation. Social protection and job creation must work in tandem. We also call on National Treasury to urgently publish the review of Active Labour Market Programmes (ALMPs) so that the public can engage meaningfully with proposals that impact the future of millions of young South Africans’.
‘Looking for work is expensive; at the same time, we have seen a decline in job creation. Economic growth plays a role, as we have seen an average growth of 1,1% for the last 16 years and a hard truth is that job-seeking can’t be incentivised if there are no jobs. A job-seeker grant is not the solution to a stagnant economy. We need large-scale interventions that address structural youth unemployment, not stopgap measures,” says Clotilde Angelucci, Acting Project Lead at Youth Capital.
The numbers speak for themselves:
“Even with sustained growth, our economy cannot absorb the millions of young people excluded from the labour market. The QLFS reported that six in ten unemployed youth have never had a job. Without large-scale and long-term solutions, they risk being locked out of formal employment for life – and this budget didn’t address that,” adds Angelucci.
Finally, we recognise the value of public participation in shaping this year’s budget process. The Finance Committee received 51 public submissions, 50 of which opposed the VAT increase. This shows that South Africans are engaging. However, we still lack a national dialogue on alternative, just revenue options – especially as the Minister signals potential new tax measures in 2026.
Youth unemployment is not just an economic issue — it’s a national emergency. We need a budget that reflects that urgency.
