Study shows South African companies struggle to find skilled workers despite high unemployment rate

South Africa's Special Economic Zones (SEZs) have attracted investment commitments exceeding R548 billion. It is expected that over 60,000 permanent jobs will be created after these projects are fully launched.

The Minister of Trade, Industry and Competition, Parks Tau, announced these figures during a meeting with investors and stakeholders at the Fatakgomo-Tubatse Special Economic Zone in Steylport, Limpopo province. At this meeting, he presented government plans for utilizing these zones to stimulate industrialization, attract capital investment, and create employment.

According to Tau, 141 companies have committed to investing in various SEZs across the country, with the total value of these investments exceeding R548 billion.

SEZ Program Strengthens Investor Confidence

Parks Tau noted that the Fatakgomo-Tubatse Special Economic Zone complements the positive history of South African SEZs, which democratic South Africa could not provide. 234 private companies are located in various SEZs across the country, with their total investments exceeding R47 billion. The SEZ program has already created 134,478 jobs, of which 32,904 are permanent.

The Minister emphasized that the growing interest from investors indicates belief in the South African SEZ program and the country's potential as an investment destination. He added that the development of new zones, including Nkomozi, Fatakgomo-Tubatse, and Musina-Machado, will strengthen the country's production capabilities, especially in mineral processing and cross-border trade.

Fatakgomo-Tubatse SEZ Targets 20,000 Jobs

The Minister called the designation of Fatakgomo-Tubatse as an SEZ in May an important step for the industrial development of Limpopo. This zone has an investment portfolio of R52.6 billion, which is expected to provide around 8,000 jobs in the short and medium term, and potentially create 20,000 jobs over the next decade.

Located in the industrial hub of Steylport, the Fatakgomo-Tubatse SEZ plans to focus on mineral beneficiation, manufacturing, renewable energy, metal processing, and logistics. Its proximity to major platinum and chrome mining operations, as well as to the Lion and Samancor ferrochrome smelters, gives it a strong position to support mineral processing and production.

He stated that the government aims to move away from raw material exports and focus on local production of higher value-added goods. Parks Tau stressed: 'Our industrial policy is clear: we must process more of what we mine, produce more of what we consume, and export more of what we produce.'

Job searching in South Africa costs an average of R490 monthly, even for individuals without income. Transportation expenses hinder some unemployed candidates from attending interviews.

This data is presented in the JOBJACK Job Seeker Report for 2026. It analyzes the experience of 867,706 people who registered on the job search platform between July 1, 2025, and July 31, 2026. During this period, new users submitted 4,919,035 applications, but only 6,566 people were hired through the platform, which equates to approximately one hire for every 132 registrations.

The report is also based on a voluntary survey of 5,087 platform users, including 4,073 unemployed respondents and 1,014 employed individuals. It was found that job searching incurs significant costs even before a candidate receives earnings, including transport costs to interviews, printing resumes and documents, and purchasing mobile internet.

Among unemployed respondents, 62.4% spend between R51 and R300 monthly on printing resumes and other materials, while 42.2% reported having no other source of income. According to the report, job seekers spend an average of R490 monthly on transport, printing, and internet combined.

When travel costs become a decisive factor

Transportation is one of the most serious problems. Among unemployed respondents who admitted missing an interview, 36.4% stated they lacked money for transport, and another 15% cited distance or travel difficulties as the reason. Overall, 8.7% of surveyed unemployed individuals admit to accepting an interview invitation but not showing up.

Ashley Nell, Head of Research and Development at JOBJACK, notes that employers may mistakenly interpret financial difficulties as unreliability. She emphasizes: 'Accessibility should never be a criterion for assessing a person's suitability for a position.' Nell points out that candidates can be excluded before employers have a chance to assess their fit simply because they cannot afford to get to the interview location.

The problem does not disappear after employment. Among employed respondents, 57.2% commute to work using minibus taxis, and 54.6% spend at least R800 per month on transport. The report shows that 73.8% of employed respondents earn no more than R6,500 per month, meaning that travel expenses can consume a substantial part of their income. For some workers, the cost of commuting to work can account for nearly a third of their monthly salary.

The experience trap

In addition to the financial burden, the report identifies previous work experience as a key factor influencing candidates' employment prospects. Candidates with work experience are 11 times more likely to be scheduled for an interview than those who have never worked. This creates a familiar problem for first-time job seekers: employers demand experience, but candidates cannot gain it without being given a first opportunity.

Nevertheless, JOBJACK data also indicates that employers should not always insist on prior experience. Of candidates interviewed through the platform between January and July 2026 for positions requiring prior experience, 41% did not meet the stated experience requirements. The company notes that alternative selection methods, including assessing candidates' skills and abilities, helped employers find suitable applicants.

Still searching for the future

Despite all the difficulties, the report shows that candidates are not necessarily willing to accept any job just because it is available. Among unemployed respondents, 82.4% consider growth opportunities an important factor when deciding on a job, compared to 37.2% who prioritize salary. Growth opportunities are also important to 74.3% of employed respondents. Nearly half of unemployed respondents, 48.2%, report searching for a job for over a year.

When asked to describe their feelings during the job search, 58.4% used at least one negative word, while 44.7% used at least one positive word. However, hope remains the most frequently mentioned individual feeling, noted by 22.3%. Co-founder and CEO of JOBJACK, Hein Bellingan, argues that employers need to revise hiring practices that impose unnecessary costs on candidates. He questions why candidates are still expected to print resumes, travel to submit applications, or attend numerous interviews for minimum wage positions. He states: 'Candidates cannot fix your hiring process; you must do it.'

It should be noted that the report's findings pertain to JOBJACK users seeking entry-level jobs and are not representative of all job seekers in South Africa.

Fears of job cuts are having a significant psychological impact on South African workers, given that the unemployment rate has reached 8.5 million people. This situation raises concerns about the hidden costs to mental health amid the country's employment crisis.

In October, as the country observes Mental Health Awareness Month, economic uncertainty is creating serious pressure on employees who are facing rising costs of living and the possibility of losing their income, financial stability, and professional identity.

According to the latest Labour Force Survey from Statistics South Africa, the number of unemployed people increased by 345,000 between the first and second quarters of 2026, reaching 8.5 million. Meanwhile, employment decreased by 16,000 to 16.7 million, and the official unemployment rate rose from 32.7% to 33.6%.

Job insecurity is increasing anxiety among workers who fear losing their positions. A study conducted by the South African Depression and Anxiety Group (SADAG) showed that 38% of surveyed employees fear being laid off, and 75% continue to think about work outside of working hours.

The results, gathered from a survey of 963 respondents in August-September 2024, also revealed that 52% of the subjects had a diagnosed mental disorder. Documented conditions included depression, stress, generalized anxiety disorder, and burnout.

Although this survey does not cover the entire employed population, it provides insight into the pressure faced by workers in an economy where finding new work can be difficult. Lauren Bright, founder of The Bright Spark Coach, noted that employment instability can threaten not only a person's financial situation, especially when work becomes central to their self-awareness and purpose.

Bright emphasized: 'We have been teaching people how to find jobs for decades, but we don't teach them enough about what to do when that job disappears. Being fired is something that happens to you, but it doesn't define you, and separating those two things can be a powerful psychological shift.'

Bright believes that preparing for uncertainty should be part of career management, not a secondary thought after a layoff occurs. She advises workers to assess their skills, experience, and professional networks while continuing education amidst workplace changes driven by artificial intelligence and other technological shifts. Support and new perspectives can also be found through building relationships and finding meaning outside of work when a career takes an unexpected turn.

Nevertheless, for some employees, the possibility of being laid off is already affecting their self-perception and outlook on the future. One worker reported that the fear of losing a job can cause destabilization even before the layoff becomes a reality, especially for people who have spent decades in one profession.

This employee stated: 'You don't have to lose your job to feel the destabilizing effect of layoffs. The fear itself can be enough. Work, especially work done for 10, 20, or 30 years, provides structure, routine, status, social connection, a sense of competence, and for many people, a very strong sense of identity.' He added: 'When someone is afraid of losing their job, they are afraid not just of losing income, but of losing their identity and place in the world.'

Another employee described waking up with anxiety about having to start from scratch amid growing concerns about AI's impact on the future of work. This worker admitted: 'I'm afraid of losing my job, my income, my routine, and the identity I built through work. Some mornings I wake up, and the first thing I feel is fear. Will there be enough money? Who am I without this job?'

He continued: 'Everyone says AI is changing everything, and I'm tired of pretending it doesn't scare me. I don't want to start over. But maybe I have to.'

These testimonies demonstrate how employment uncertainty can affect workers long before the official termination of employment, causing them to doubt their financial future, professional identity, and ability to adapt. Lauren Bright also urged workers to reconsider the traditional notion that a successful career must involve permanent employment. Consulting, freelancing, contract work, and entrepreneurship can offer alternative ways to earn income, although she warned that job loss should not automatically mean starting one's own business.