Plenty of People. Very Few Right Fits.
HRCorp Insights · October 2026
By Brian Royce — Director, HRCorp · October 2026
Let’s start with the numbers, because they matter.
South Africa’s official unemployment rate went from 32.7% in the first quarter of this year to 33.6% in the second. That is about 8.5 million people without work. If you count the people who have given up looking, the figure is 43.8%. For our young people it is worse: youth unemployment now sits at 47.4%.
Here in the Western Cape we have the lowest rate in the country at 19.5% or 26.1% (expanded) depending on how that is explained. That is still one in five or four people. The North West has it at 56%(expanded), just think, over half the working population is looking for a job. Then we look at Gauteng at 40.5%(expanded), KZN at 47.5% (expanded) and it’s still incredible to think about. For comparison the worst two countries in Europe are Bosnia and Herzegovina at 11.4% and North Macedonia at 11.4%. And what do they have in common? Nothing. Every other person for SA vs. one in ten are very different numbers.
Blaming, Scapegoating, and Over-regulating all have done exactly nothing. There are still way too many people unemployed.
Good, stable jobs are disappearing. We lost 345,000 jobs in the first quarter of 2026 alone. In the second quarter formal jobs dropped by another 41,000, while the informal sector picked up 34,000. People aren’t giving up. They are finding whatever work they can, but it is less secure work.
Our schools and training aren’t keeping up either. There is a real gap between what people are taught and what a business needs from them on a Monday morning. And many of our most experienced people are leaving the country, which is a big part of why the skills shortage keeps getting wider.
So why can’t companies find good people?
This is the question I get asked most.
A client advertises a role and receives 300 CVs. They should be spoiled for choice. Instead they come to me frustrated, because out of 300 there might be one who can really do the job, and that gap keeps getting bigger.
The research says the same thing. More than 70% of employers in a recent study said they struggle to find people with the right skills. The problem isn’t a lack of people. It is a lack of the right people in the right place.
From what I see every day, it comes down to a few things:
Ready for work. A qualification gets someone through the door, but it doesn’t mean they can do the job from day one.
Digital skills. Just over half of employers struggle to find people ready for how business works now.
Soft skills. Over 60% of employers said their people’s interpersonal skills were only minimally or mildly adequate. In my experience this is where most bad hires go wrong.
Skills can be taught. Attitude, reliability and how someone treats people are much harder to change.
Specialist roles. 89% of large employers say unfilled critical roles are hurting their business.
We need to let business thrive in this country. When people can work, everything changes: crime drops, skills grow, and more people get hired.
Brian Royce — Director, HRCorp
Brian Royce is the Director of HRCorp, with 18 years of experience in HR and recruitment. His background is in behavioural assessment and people development, and he leads HRCorp's culture-fit approach to hiring across South Africa.
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