Matric success without jobs is a risk SA can’t afford

Matric results as an early economic indicator

"Improving matric outcomes matters because education is one of the most powerful drivers of long-term GDP growth alongside infrastructure investment,” says Investec Wealth & Investment’s Osagyefo Mazwai.. “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 real issue is building human capital. Stronger educational outcomes increase the likelihood that young people will become economically active participants in the future, rather than remaining structurally excluded from the labour market.

Despite spending around 6% of GDP on education (or 18% of government spending), skills readiness and innovation remain low, and participation in high-value sectors lags. This disconnect highlights why matric results cannot be viewed in isolation. Instead, they should be read as a forward-looking indicator of whether the economy is structurally positioned to absorb young people into productive activity. 

Building human capital, not just pass rates

The real issue is building human capital. Stronger educational outcomes increase the likelihood that young people will become economically active participants in the future, rather than remaining structurally excluded from the labour market.

Despite spending around 6% of GDP on education (or 18% of government spending), skills readiness and innovation remain low, and participation in high-value sectors lags. This disconnect highlights why matric results cannot be viewed in isolation. Instead, they should be read as a forward-looking indicator of whether the economy is structurally positioned to absorb young people into productive activity. 

The risk of education without pathways to work

“History shows that prolonged youth disengagement fuels instability and so the results remind us that the real challenge is systemic: converting education outcomes into economic participation," Mazwai warns. 

Youth unemployment in South Africa has been consistently above 55% over the last decade, and the skills base in South Africa must be increased for this to meaningfully change alongside building economic resilience through the likes of Operation Vulindlela, the District Development Model, etc. Foreign capital can likely flow into SA when we have addressed capacity constraints which include the quality of our human capital. What’s more, without linking education outcomes to spending, investment becomes wasteful.

Gains in matric performance must translate into productivity, competitiveness and inclusive GDP growth especially given that South Africa’s education spending as a percentage of GDP is amongst the highest in the world. 

Linking education, growth and reform

The outlook for economic growth in SA has been improving and encouraging. Growth of above 2% is necessary to outpace population growth and meaningfully address unemployment in South Africa. BDO released a report in July 2025 which referred to findings by the World Bank that a 1% increase in education attainment could boost SA’s GDP by 0.5%. 

Mazwai argues that government has a critical role to play in future-proofing SA’s economic performance in addition to education. “There needs to be more targeted support for labour-intensive sectors and a stronger focus on bringing economic opportunity closer to communities, including through mechanisms such as the district development model. Growth that is geographically and sector concentrated will not solve the youth employment crisis. As the world advances, it is also critical to improve maths and science outcomes to support stem fields in a technology driven world.”

Education as economic infrastructure

Improving youth education and employment outcomes also eases long-term fiscal pressure on the state. “Reducing youth unemployment lowers the fiscal burden associated with prolonged social support,” Mazwai says. “But this is not about cutting assistance - it’s about creating the space to redirect public resources towards infrastructure development, which in turn creates jobs creating a cyclical pattern for sustainable economic growth.”

‘Investing in People’ is also a key World Economic Forum theme, driven by tech and green disruptions. It calls for urgent action to future-proof human capital through skills and education.

“Better education creates critical thinkers, innovators and problem-solvers. It builds an economy that is more robust, adaptable and resilient. If South Africa wants matric success to translate into higher growth expectations, today’s learners must become tomorrow’s contributors to the economy. 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,” concludes Mazwai.