Cape Town – Every statistic about youth unemployment in South Africa represents a young person actively trying, and failing to access an economy that is not creating enough opportunities for them. It is this reality that has prompted Youth Capital to launch its PEPs 4 Youth campaign, calling on the government to urgently expand and protect Public Employment Programmes (PEPs) as a response to South Africa’s deepening youth unemployment crisis.
South Africa’s latest labour data highlights the scale of the challenge. Youth unemployment currently stands at 43.8%, and nearly 10 million young people are not in education, employment, or training. For Q4 2025, Statistics South Africa reported that 113,000 young people lost their jobs, underscoring how fragile and limited existing opportunities are.
Despite this, critical public employment programmes are being reduced or defunded. The Basic Education Employment Initiative (BEEI), the largest youth public employment programme, had its budget decreased from R5.6 billion in 2025 to R314 million in the tabled 2026 budget; funding that now only covers administration rather than actual opportunities. Moreover, funding for the creative sector has been cut entirely. This effectively removes well over 200,000 annual work opportunities at a time when demand for such opportunities is at its highest.
Youth Capital Project Lead Buhlebethu Magwaza said that the government, particularly National Treasury and the Minister of Finance, have a critical responsibility to protect and allocate resources in a way that reflects the urgency of the youth unemployment crisis. “At a time when youth unemployment remains at crisis levels, reducing funding for programmes that have already demonstrated impact is not a neutral decision, it is a decision to reduce access to opportunity at scale for young people. Budget decisions should not be abstract; they determine whether a young person has a pathway into work or is left behind. The significant cuts to programmes like the BEEI, and the complete withdrawal of funding from parts of the creative sector risk dismantling proven pathways into the economy. Safeguarding these funds must be treated as a national priority.”
Public Employment Programmes such as the Basic Education Employment Initiative (BEEI), the Expanded Public Works Programme (EPWP), the Community Work Programme (CWP), the National Youth Service, and the Social Employment Fund, have demonstrated their ability to create work opportunities while delivering essential services across education, community development, infrastructure, and the social sector. Collectively, these programmes show that it is possible to convert public expenditure directly into employment at scale, particularly for young people who are excluded from the formal labour market.
“These programmes are not theoretical solutions. They are existing, functioning mechanisms that connect young people to meaningful work while meeting real community needs. Where opportunities exist, young people respond in large numbers, the constraint is not willingness to work, but the availability of funded opportunities. The challenge is not whether solutions exist, but whether there is political will to fund them at the scale needed,” said Magwaza.
Through the PEPs 4 Youth campaign, Youth Capital is calling for a ring-fenced, multi-year public employment budget that guarantees at least 1 million opportunities for young people annually. This funding must be protected and predictable. The current stop-start approach, where programmes depend on uncertain, year-to-year allocations, is not only inefficient, it is disruptive. It limits scale, undermines impact, and leaves young people in a constant state of uncertainty. A permanent crisis cannot be addressed through temporary funding.
ENDS
For media enquiries and interview requests:
Murphy Nganga – Communication Lead, Youth Capital
Email: murphy@youthcapital.co.za
Mobile: 073 9874061