NYDA releases inaugural Quarterly Youth Economic Bulletin

The National Youth Development Agency (NYDA) has released the inaugural edition of the Quarterly Youth Economic Bulletin, a new publication that provides analysis of economic trends affecting young people in South Africa. The Bulletin forms part of the NYDA’s effort to strengthen evidence-based policy and ensure that youth development programmes are informed by credible economic analysis.

The Quarterly Youth Economic Bulletin provides an overview of key economic developments affecting young South Africans. The publication covers several sections, including the global economic outlook, South Africa’s macroeconomic performance, youth labour market trends, sectoral employment patterns, and the fiscal and policy environment affecting youth employment and youth enterprises.

The latest analysis shows that while South Africa’s economy recorded modest growth during 2025, the pace of expansion remains too slow to significantly reduce youth unemployment. According to the most recent national accounts data, the economy grew by 1.1 per cent in 2025, with 0.4 per cent growth in the fourth quarter.

Although this represents an improvement compared with 2024, economic growth at this level remains far below what is required to absorb the large number of young people entering the labour market each year. Youth unemployment remains extremely high, with more than four out of every ten economically active young South Africans unable to find work.

The Bulletin highlights that the structure of economic growth is a key constraint on youth employment. Recent growth has been concentrated in the services sectors such as finance, real estate and business services. While these sectors contribute significantly to economic output, they typically require higher levels of education and specialised skills, limiting access for many young labour market entrants. At the same time, several productive sectors that traditionally absorb large numbers of workers, including manufacturing, construction and mining, have remained weak or contracted in recent data.

This pattern reflects a broader structural challenge within the economy. When economic expansion is concentrated in relatively capital-intensive or skills-intensive sectors, employment growth tends to remain limited even when GDP increases. As a result, stronger economic growth alone may not automatically translate into meaningful job creation unless it is accompanied by expansion in labour absorbing sectors.

The Bulletin also notes that investment in the domestic economy remains subdued, particularly in infrastructure, construction and industrial production. Investment plays a critical role in expanding productive capacity and supporting employment creation. Weak investment therefore constrains the economy’s ability to generate new job opportunities for young people entering the labour market.

At the same time, inflation declined to around 3.2 per cent in 2025, the lowest average level in more than two decades. While this easing in price pressures provides macroeconomic relief, many young people continue to face high cost-of-living pressures due to limited income opportunities and persistently high unemployment.

The Bulletin also highlights important policy developments affecting youth employment programmes. While the Presidential Youth Employment Initiative continues to play an important role in creating work opportunities for young people, broader fiscal constraints limit the scale of intervention.

According to Tshepo Moloi, Head of Economic Research at the NYDA, the findings highlight the need for a more coordinated approach to economic development. “Youth unemployment reflects deeper structural weaknesses in the economy. Addressing it requires stronger investment, labour absorbing growth and closer alignment between economic policy, industrial development and youth employment strategies.”

The NYDA hopes that the Quarterly Youth Economic Bulletin will contribute to more informed policy discussions and help identify practical strategies to expand economic opportunities for young South Africans.

For Media Enquiries: 
MediaEnquiries@NYDA.gov.za 

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