Matric results week remains one of South Africa’s rare moments of shared optimism. Headlines celebrate pass rates, families mark years of sacrifice and political leaders point to progress in the schooling system. Yet once certificates are collected and applause fades, a far more consequential question confronts hundreds of thousands of young South Africans: what happens next and how many will actually be absorbed into the economy?
For many young people matric is not a gateway but a bottleneck. Tertiary education remains financially out of reach for a large proportion of those who qualify academically. Though funding mechanisms, such as the National Student Financial Aid Scheme (NSFAS) and bursaries, exist they are oversubscribed, often delayed and unable to meet demand. As a result, thousands of capable students will either take on debt with uncertain returns or abandon further study altogether. The system quietly filters young people not by ability, but by affordability.
Fragile social contract
This reality is deeply familiar to graduates from previously disadvantaged households. For countless families education was elevated to a non-negotiable priority precisely because earlier generations were denied it. Parents and grandparents, excluded from opportunity under a discriminatory past, sacrificed relentlessly so their children could study. School fees took precedence over healthcare and registration fees over savings. The implicit social contract was simple: education would translate into work, stability and upward mobility.
That contract is now increasingly fragile. According to Stats South Africa, youth unemployment remains structurally entrenched. In early 2025 unemployment among people aged 15–34 stood at about 46%, rising to more than 58% for those aged 15–24. The crisis extends even to graduates. A growing number of degree holders are unemployed or underemployed, often working in roles unrelated to their qualifications. Education still matters, but it no longer guarantees inclusion in the economy.
There is, at least, acknowledgement that the education system itself must evolve. Basic education minister Siviwe Gwarube has recognised the need to modernise learning by integrating digital skills, technology and AI so that learners are equipped for a rapidly changing global economy. This admission is important. But education reform alone cannot compensate for an economy that fails to create sufficient entry points for young people once they leave the classroom.
Entry-level salaries have risen far more slowly than the cost of living, eroding purchasing power relative to previous generations. At the same time, housing, food and transport costs continue to rise, while internships and junior roles — often the first rung on the economic ladder — remain poorly remunerated.
Even for those who complete tertiary education the transition into independence is increasingly delayed. In an October 2025 City Press article journalist Sthembiso Lebuso detailed how financial independence has steadily slipped away for young South Africans as wages have trailed inflation for nearly two decades.
Entry-level salaries have risen far more slowly than the cost of living, eroding purchasing power relative to previous generations. At the same time, housing, food and transport costs continue to rise, while internships and junior roles — often the first rung on the economic ladder — remain poorly remunerated. The result is a cohort that is educated and employed in name, yet economically constrained.
For those who do not continue studying beyond matric, prospects are even narrower. Millions of young South Africans are neither in employment, education nor training, with few structured pathways into productive work. Skills development is frequently discussed, but practical, funded routes into the labour market — particularly for nongraduates — remain scarce. This is not a question of willingness to work but of access to opportunity. The economic consequences of this failure are profound. Persistent youth unemployment suppresses consumption, delays household formation, reduces future tax contributions and accelerates skills flight. South Africa already exports a growing share of its young talent to markets that reward output over tenure. Economies that integrate young professionals early — particularly in technology-driven sectors — reap productivity gains. Those that do not suffer long-term economic drag.
The political implications are equally serious. Young people’s disengagement from democratic processes is not apathy but a rational response to exclusion. When upward mobility appears unattainable institutions lose credibility. Social cohesion weakens. Instability becomes more likely — not because young people are irresponsible but because exclusion breeds frustration.
Private sector role
This is where the private sector must assume a more active role. The government alone cannot absorb millions of young people into the economy. But business has agency. Hiring criteria that place disproportionate emphasis on age, seniority and years of experience should be re-examined in favour of capability, adaptability and performance. Entry-level remuneration must reflect economic reality, not outdated assumptions about what young people should be able to survive on.
Banks and financial institutions need to move beyond blanket risk aversion and actively support young entrepreneurs through guidance, phased finance and developmental capital — not simply rejection letters. Critically, opportunity must extend beyond graduates. A functional economy requires multiple pathways into work: apprenticeships, learnerships, technical roles and entrepreneurship — not a narrow funnel that excludes those without tertiary qualifications.
Matric results week should therefore prompt more than celebration. It should force a sober assessment of what the education system produces and whether the economy is capable of absorbing that talent.
Economic emergency
If youth unemployment continues to be treated as a social issue rather than an economic emergency, the costs will compound. Skills will keep leaving. Productivity will stagnate. Inequality will deepen. And a generation raised to believe that education guarantees opportunity will inherit disappointment instead.
This is not only a failure of youth policy. It is a failure of economic policy and one South Africa cannot afford to ignore.
• Venter is an executive manager at off-grid, renewable energy electric vehicle charging station company Zero Carbon Charge.
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