The labor market is undergoing a profound transformation as digital technologies keep growing. While many jobs are disappearing, more are being created and their requirements are changing. In that context, the government needs to urgently take appropriate measures to anticipate and find solutions to help fill the vacancies that are opening.  

South Africa will soon launch a nationwide training program to equip the unemployed youth with digital skills, President Cyril Ramaphosa (photo) recently announced. In his weekly newsletter published on Sunday, April 17, he explained that ZAR800 million ($43.6 million) will be invested to fund this new youth initiative led by the National Skills Fund.

According to the World Economic Forum (WEF), “South Africa is projected to see the highest jobless rate globally. As the most industrialized nation on the continent, unemployment is estimated to hit 35.6% in 2023.”

This is due to a number of causes. They include low economic growth that has led to fewer job opportunities, a mismatch between education and skills that makes it difficult for many people to find work, and structural problems like unequal access to opportunities. There are also concentrated ownership, a limited domestic market, and a rigid labor market with labor laws, regulations, and collective bargaining agreements that limit access to employment, particularly in the SME segment. 

As the digital economy creates new high-potential occupations, the government sees the retraining or reorientation of some South Africans as a way to respond to the new labor market realities brought about by the accelerating digital transformation. The project to equip the unemployed with digital skills is one of the many development initiatives taken by the government, since 2020, to prepare the country for the fourth industrial revolution. 

Over the past three years, many international and local companies specializing in digital services or broadband connectivity have increased their investments in South Africa. New companies have expressed interest in the market.  The various investments are expected to create thousands of specialized jobs, which the South African government wants to prepare the local workforce for. 

Muriel Edjo