Artificial intelligence (AI), automation and digital technologies are reshaping the global labour market, transforming the jobs available and the skills employers increasingly demand.

According to the World Economic Forum’s Future of Jobs Report 2025, structural transformation is expected to reshape 22% of today’s jobs by 2030.

As part of this shift, new jobs equivalent to 14% of current global employment are expected to be created, amounting to 170-million new roles worldwide. Many of these emerging roles will require technical, engineering, and digital skills that are already in high demand.

For South Africa, the question is whether today’s young people are being equipped with the skills needed to fill these emerging roles. Despite a national unemployment rate of 32,7% in the first quarter of 2026, with the rate among those aged 25–34 standing at 40,6%, employers across engineering, manufacturing, and technology sectors continue to report shortages of critical skills.

This raises an important question: if young people are looking for work while employers continue to struggle to find the skills they need, where does the disconnect lie?

The answer is not a lack of talent, ambition, or potential. It is a growing misalignment between the skills employers need and those developed through higher education and training, compounded by limited access to practical workplace learning opportunities. In many cases, learning programmes are not evolving at the same pace as industry, where digitalization and artificial intelligence are reshaping the nature of work. As a result, many young people enter the labour market without the skills, experience, and clear pathways needed to secure employment.

“The disconnect between education and employment is becoming increasingly evident. As industries evolve through digitalization, automation and AI, employers are seeking a combination of technical expertise, analytical thinking, technological literacy and adaptability,” says Cynthia Khoali, corporate social responsibility manager at ABB South Africa.

“Many education and training systems are struggling to keep pace. Bridging this gap will require closer partnerships between industry, higher learning institutions, and skills centres to ensure young people are equipped with the capabilities needed for the jobs of tomorrow, not those of yesterday.”

With more than 60% of businesses operating in South Africa identifying skills gaps as a key barrier to business transformation by 2030, equipping young people with the technical, digital and engineering capabilities needed for emerging industries must become a national priority. The country’s ability to benefit from jobs of the future will depend on how quickly it develops the talent pipeline needed to compete in an increasingly technology-driven economy.

Preparing young people for the future of work requires more than classroom learning. They need mentors, workplace exposure, and opportunities to engage with emerging technologies and industry professionals. These experiences help them make informed educational and career choices, develop professional networks, and better understand the skills employers value. While exposure alone does not guarantee employment, it strengthens the link between education and employability.

This is where industry has a critical role to play. While no single employer can solve youth unemployment, businesses can help bridge the gap between education and employment through expanding investments in mentorships, workplace exposure, internships, and skills development programmes. These investments give young people the practical experience and technical capabilities needed to succeed in a rapidly evolving labour market.