South Africa strengthens its Labour Market Information System from labour market data to evidence for action

South Africa, Pretoria (ILO News) - ILO support to South Africa’s Labour Market Information System (LMIS) is delivering an important next step, strengthening national capacity to turn labour market data into evidence that can inform employment policies and programmes.

Building on ILO support to the implementation of the national LMIS, the Department of Employment and Labour (DEL) has developed a report, An Examination of the Labour Market Status of Youth and Adults in South Africa based on Labour Market Information System Decent Work Indicators, 2021–2025. The report is owned by DEL and has been validated by Statistics South Africa (Stats SA), with the ILO providing technical and financial support to the process.

The report represents a progression from establishing the LMIS to strengthening national institutions' capacity to use it. South Africa’s LMIS was established through collaboration between DEL, Stats SA and the ILO to strengthen the availability and use of labour market information for policy formulation.

As part of this continued support, the ILO facilitated a national capacity-building process on LMIS reporting, bringing together representatives from DEL, Stats SA and other stakeholders. The process strengthened DEL’s capacity, as the implementing agency of the national LMIS, to analyse LMIS data using the Decent Work Framework of indicators and translate the findings into policy-relevant labour market intelligence.

Drawing primarily on South Africa’s Quarterly Labour Force Survey and ILOSTAT data, the report examined employment, labour force participation, unemployment, labour underutilisation and NEET rates, as well as employment by occupation and economic activity. Its analysis by age and sex provides important insights into inequalities and vulnerabilities within the labour market.

One of the clearest findings is the continued vulnerability of young people. Youth aged 15–24 consistently recorded higher unemployment than the broader 15–34 youth group, adults and the national working-age population. By the first quarter of 2025, unemployment among 15–24-year-olds stood at 62.5 per cent, compared with 29 per cent among adults aged 25 and above.

The analysis also highlights persistent gender disparities. Among youth aged 15–34, female unemployment remained consistently higher than male unemployment throughout the period examined, pointing to continued barriers faced by young women in accessing employment.

At the same time, there were employment gains. Employment among young people aged 15–34 increased from approximately 5 million in the first quarter of 2021 to 5.7 million in the first quarter of 2025. Trade accounted for the largest share of youth employment, followed by services and manufacturing.

Strengthening national ownership

Beyond its findings, the report demonstrates the value of strengthening national capacity to turn labour market information into evidence for action.

DEL’s ownership of the report, with technical validation from Stats SA and support from the ILO, marks an important progression in the LMIS journey. From building the system to strengthening its practical use for policy and programme development.

The report highlights priorities including better coordination of Active Labour Market Programmes, support for young people transitioning from education to employment, targeted responses for discouraged work-seekers and young people not in employment, education or training (NEET), and action to address persistent gender inequalities.

The work demonstrates the value of sustainable technical cooperation: strengthening national institutions to independently generate, analyse and use labour market intelligence to inform policies and programmes that advance decent and productive employment. Changing the experience of the youth in the labour market, has the potential to change the labour market of the nation overall.