Cornerstone Institute notes the latest Quarterly Labour Force Survey (QLFS) from Statistics South Africa, released on 12 May 2026, which shows the official (narrow) unemployment rate rising to 32.7% in Q1 2026, up 1.3 percentage points from 31.4% in Q4 2025. According to Stats SA, between 301,000 and 345,000 jobs were lost during the first three months of the year, total employment declined to 16.8 million, and the number of discouraged work-seekers increased by 178,000.
Speaking on the issue, Cornerstone Institute CEO, Basier Dramat, said: “The latest QLFS results underscore the fragility of South Africa’s labour market. The simultaneous rise in unemployment and discouraged work-seeking points to structural barriers that prevent work-seekers from connecting with opportunities. Without targeted interventions that reduce hiring frictions and catalyse labour-intensive growth, we risk entrenching long-run joblessness.”
Dramat added that the country’s employment crisis cannot be separated from the growing mismatch between employer expectations and graduate readiness. “South Africa is not only facing a jobs crisis, but also a workplace readiness crisis. Employers are increasingly seeking candidates who can demonstrate judgement, communication, accountability, problem-solving and adaptability in real-world environments. These are competencies that traditional learning models do not always develop effectively,” he said.
A recent survey conducted among partners participating in the institute’s GB100 Give Back Campaign found that businesses are experiencing significant delays in productivity when onboarding newly qualified mid-level managers, with some employers estimating a gap of up to two years before recruits operate at full effectiveness.
“The challenge is no longer simply whether graduates possess knowledge, but whether they can apply that knowledge in fast-moving, high-pressure workplace contexts,” said Dramat.
The survey, which included organisations across sectors such as pharmaceuticals, manufacturing, media, mental health, youth development and business services, identified performance management, communication and planning as among the most significant skills deficits in new hires. Employers also highlighted ownership, accountability, ethical behaviour and reliability as critical workplace attributes increasingly in short supply.
Cornerstone Institute believes addressing the unemployment crisis will to a large extent require stronger alignment between education, industry and economic policy. This includes expanding work-integrated learning opportunities, increasing employer participation in curriculum development, and placing greater emphasis on practical problem-solving, leadership and applied communication within tertiary education.
“The labour market is evolving rapidly, and our education systems must evolve with it. If South Africa is serio
us about reducing unemployment, then employability, workplace integration and labour market responsiveness have to become central measures of educational success,” Dramat added.
About Cornerstone Institute:
Cornerstone Institute is a registered non-profit private higher education provider dedicated to empowering students through accessible, values-driven learning. Offering accredited certificates, degrees, honours programmes, and short courses in the fields of Humanities, Entrepreneurship, and Economic Transformation, Cornerstone serves students across South Africa and beyond through both online and on-campus study options.
The Give Back 100 Campaign represents a central part of Cornerstone’s mission to build a more inclusive and equitable future through education.
To learn more, visit: https://cornerstone.ac.za/