Women, youth, unemployment and AI: an unhappy alliance

South Africa's unemployment crisis is intensifying, prompting worries that the country's young people and women are ill-equipped for a labor market transformed by artificial intelligence and technological advancements. Women, who already face rising unemployment figures, are not only shouldering the responsibility of their families but are also tasked with preparing the next generation for an ever-evolving workplace.

Nelo P Spies, executive director of youth-employment organization JA South Africa, emphasizes that addressing unemployment is no longer merely about generating more jobs; it requires preparing young people for the present-day economy and workforce.

Statistics South Africa's latest Quarterly Labour Force Survey for the second quarter of 2026 reveals an official unemployment rate of 33.6%, up from 32.7% in the first quarter. Unemployment figures increased by 345,000 to around 8.5 million, while employment declined by 16,000 to 16.7 million. The surge in youth unemployment, which rose to 43.8% from 43.7% in the previous quarter, affects five million people aged 15 to 24.

Spies stresses that the latest data underscores the disproportionate impact unemployment continues to have on young people and women. She warns that a generation of unskilled individuals may struggle to take over when older workers retire.

Frank Blackmore, lead economist at KPMG South Africa, attributes the worsening labor market conditions to South Africa's prolonged period of weak economic growth. He argues that higher economic growth is necessary to provide the conditions for absorbing the unemployed into the labor force. While economists blame sluggish economic growth for high unemployment, Spies contends that the issue extends beyond job creation.

She insists that tackling youth unemployment must begin earlier in a person's education, going beyond merely generating more jobs.

AI's integration into workplaces worldwide raises concerns about its potential impact on employment, particularly for young workers. Spies believes AI presents both challenges and opportunities. In JA programmes this year, a significant focus is on equipping youth with an understanding of AI and leveraging its potential for innovation.

She warns that many traditional entry-level roles, often considered stepping stones into employment, are becoming increasingly automated. AI is reshaping the labor market, making routine knowledge increasingly less relevant for employability. Instead, future employability will depend more on creativity, adaptability, digital capability, collaboration, and entrepreneurial thinking. Spies urges developing young people with skills and a mindset suited for the future world of work.

Low participation in science, technology, engineering, and mathematics (STEM) subjects among young women remains a significant challenge. Experts argue that this trend could exacerbate future employment inequalities. Spies calls for targeted interventions to encourage young women to pursue STEM-related studies and careers. She emphasizes the importance of showing young people that STEM is not intimidating but accessible.

Despite concerns about AI's impact on unemployment, economists caution that the technology is unlikely to provide a quick solution to South Africa's unemployment crisis. Instead, they highlight the need for investments in infrastructure, digital infrastructure, and skills development to boost productivity and competitiveness in the long term.