South Africa’s education crisis is worse than it seems

While South Africa celebrated the announcement of the 88% matric pass rate in 2025, the highest in the country’s history, a sky-high unemployment rate and low economic growth are signs that the country is facing a severe education crisis. 

South Africa spends around 6% of the country’s Gross Domestic Product (GDP) on education. This is 18% of all government spending and more than countries such as France, the UK or Australia spend.

Minister of Education, Siviwe Gwarube, celebrated the latest matric results as a return on this investment, with the pass rate increasing by 0.7% from 2024, even as the number of learners writing their final exams increased to 656,000 in 2025.

However, despite supposed improvements in education, youth unemployment in South Africa has consistently remained above 55% over the last decade.

This indicates that education is not translating into skills readiness and innovation, leading to a lack of participation in high-value sectors by today’s graduates. 

Osagyefo Mazwai, Wealth and Investment Strategist from Investec, said that education and matric pass rates are an early indicator of the country’s future economic capacity and labour force potential. 

“Improving matric outcomes matters because education is one of the most powerful drivers of long-term GDP growth, alongside infrastructure investment,” he said. 

“Economic growth and job creation are directly linked, and education is where that process begins. Basic education lays the foundation for a labour force that can fuel growth.”

The latest statistics for the fourth quarter of the 2025/2026 financial year from Statistics South Africa (StatsSA) paint a grim picture of the skills gap. 

In the last quarter, 113,000 young people lost their jobs, pushing the total number of unemployed youth to 5.8 million, with the unemployment rate for those between 25 and 34 sitting at 44.3%.

The data showed that young people with a matric qualification have a slim, 4.8% chance of finding employment, while those with a tertiary qualification fare slightly better at 7.5%.

“Without clearer pathways from school into future-facing skills, the country risks entrenching youth unemployment at levels that pose economic and societal risks,” said Mazwai. 

South Africa risks entrenching youth unemployment

History shows prolonged youth disengagement fuels instability, Mazwai warned. The skills base in South Africa must be increased to meaningfully change the high unemployment rate.

The World Bank indicates that a 1% increase in education attainment could boost South Africa’s GDP by 0.5%. A growth rate of 2% is necessary to keep up with the country’s population growth.

In remedying the issue, Mazwai argues that it is critical to improve South Africa’s maths and science outcomes to support STEM fields in a technologically driven world.

Gwarube herself acknowledged that this is a challenge, with only 34% of candidates for 2025 writing core mathematics, while most wrote mathematical literacy. 

Additionally, while there was a small increase in the number of learners taking mathematics exams, there was a drop in their performance. 

Gwarube told the Parliamentary Portfolio Committee on Basic Education that 253,368 candidates wrote the mathematics exam, an increase from last year’s 251,488, but only 1.9% received distinctions, a decrease from 3.9% in 2024.

Mazwai acknowledged that other work needs to be done by government to bring opportunities closer to young graduates. “Growth that is geographically and sector concentrated will not solve the youth employment crisis,” he said. 

In addressing this skills gap, Professor HB Klopper, academic Dean at the Belgium Campus iTversity, commenting on the matric results, said that South Africa should focus less on matric university pass rates.

He advocates for a focus on vocational education. “We undervalue blue-collar and technical professions, despite facing a critical shortage of artisans,” he said. 

He added that many European countries view vocational qualifications as highly valued skills, and artisans and technicians enjoy strong labour mobility, competitive salaries and high social status. 

“Encouraging students who learn better with their hands than from chalkboards to pursue an academic NSC sets them up for failure and increases pressure to cheat,” said Klopper. 

Mazwai similarly advocates for an approach to education that better prepares young people for employment. 

“Ultimately, matric results should be seen as an economic barometer, not a standalone achievement. Education is not just a social good – it is economic infrastructure,” he said.