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Wednesday, May 28, 2025
Motoring Industry News

NADA urges enhanced education and industry partnerships to combat youth unemployment in South Africa

Willem van de Putte|Published

One of the ways to address youth unemployment is through structured work-based learning; internships and learnerships.

Image: Supplied

With the latest unemployment figures revealing a deepening jobs crisis, partnerships between the education and private sectors are essential to South Africa’s future.

According to Statistics South Africa’s Q1 2025 Labour Force Survey, the official unemployment rate has risen to 32.9%, while the expanded definition of unemployment, which includes discouraged job seekers, now sits at a staggering 43.1%.

Among young South Africans aged 15–24, 59.4% are unemployed, the highest of any age group.

Real-world skills

“South Africa’s young people are talented, hungry to learn and eager to work,  but they need the opportunity to gain real-world skills that translate into jobs,” said Thembinkosi Pantsi, Vice-Chairperson of the National Automobile Dealers’ Association (NADA). 

One of the ways to address youth unemployment is through structured work-based learning. Internships and learnerships, particularly those linked to TVET colleges, offer students exposure to real working environments.

NADA and its members have been active supporters of these initiatives, with many franchised dealers already partnering with educational institutions to host students, offer mentorship, and provide job placements. 

More needed

However, Pantsi says this needs to happen at a much greater scale.

“The automotive sector, especially franchised dealers, is uniquely positioned to absorb learners, mentor them, and develop the kind of skills that are in short supply across the country. 

“We cannot afford to continue losing this potential to unemployment.”

NADA called on automotive employers, education authorities, and policymakers to ramp up support for workplace learning models.

Investing in the future

This includes expanding funding for stipends, streamlining partnerships between colleges and dealerships, and recognising employers that meaningfully contribute to skills development.

“Dealerships that invest in learnerships and mentorship are not just fulfilling a social mandate, they’re investing in the future of their own businesses. Technicians, service advisors, parts specialists, and salespeople all require practical, hands-on experience to thrive.

“In a country where almost six in 10 young people are unemployed, every opportunity to gain experience matters. It’s time to connect the dots between education and employment and drive real change from the ground up,” said Pantsi.