South African Unemployment Rate Surges to 33.2%

South Africa’s unemployment rate has surged to a staggering 33.2%. Behind this number lies an even more troubling reality, with the country’s youth continuing to bear the brunt of the crisis. With youth unemployment increasing by 39,000 to 4.9 million compared to the first quarter of this year, the barriers facing young people entering the workforce have never been more daunting.

For many young South Africans, securing their first job is more than a personal milestone, representing the key to economic independence and inclusion. However, for millions, this door remains firmly shut. More than 1.9 million people under 35 years of age have already given up searching for work, while almost 60% have no previous work experience. This creates a paradox, where jobs require experience, yet experience requires a job.

“While education offers some protection, the divide remains stark,” says Jennifer Barkhuizen, Head of Marketing at Managed Integrity Evaluation (MIE). “Youth without matric qualifications face an unemployment rate above 51%, while those that have finished school fare marginally better at 47.6%. Tertiary training improves the odds; however, a graduate employment rate of 23.9% remains uncomfortably high in a country in need of skills.”

Despite the challenges, opportunities do exist. Growth in technology, renewable energy, logistics, healthcare and financial services is driving demand for young people who bring digital fluency, problem-solving ability and adaptability. For the millions of jobseekers, these sectors offer rare entry points into markets that otherwise feel out of reach. However, while these opportunities exist, employers face a different challenge – ensuring that qualifications are genuine.

The risk of misrepresented credentials

Employers eager to bring in fresh talent are increasingly confronted with the risk of misrepresented credentials. To this end, MIE’s 2024 Background Screening Index reveals that of the 652,133 qualification checks conducted, 6.59% contained discrepancies. As many as 7.82% of matric certificates and 8.28% of short course qualifications could not be verified, while international credentials proved even more problematic, with 11% failing verification.

“Fraudulent qualifications are easily purchased online and on social media, making it imperative for employers to verify educational qualifications. Tertiary qualification risk remains high, as many institutions do not maintain centralised records, often leading to delays in verification,” explains Barkhuizen.

Beyond education, employers must also weigh risks such as criminal records and financial integrity. Convictions for fraud, theft, or assault highlight the importance of thorough vetting to protect workplace trust and safety. At the same time, credit checks often uncover concerns such as defaults or debt review, raising red flags for potential roles in finance and logistics where reliability is non-negotiable.

“Screening is not about excluding people but about building trust between employer and employee. By verifying credentials, companies can hire with confidence while opening doors for those who are genuine, giving South Africa’s youth a real chance to step into the workforce and help shape a fairer, more transparent future,” concludes Barkhuizen.

In today’s volatile job market, trust is no longer a given – it’s a gamble. With South Africa’s unemployment rate exceeding 32% and expected to rise beyond 33% this year, desperation is fueling deception in the job market. Fake qualifications, identity fraud, and financial misrepresentations are infiltrating hiring processes, while businesses, under pressure to cut costs, screen fewer candidates. The result? A hiring crisis in which overlooking due diligence could lead to regulatory breaches, reputational damage, and financial losses. 

Against this backdrop, Managed Integrity Evaluation (MIE), the leading provider of background screening services in Southern Africa and a division of Mettus, has released its 2024 Background Screening Index. The report was compiled based on over 3.2 million background screening transactions that uncover key hiring trends and risks shaping the job market.

Fake credentials on the rise: The truth behind qualification fraud

“Among the most prominent concerns is qualification misrepresentation,” says Jennifer Barkhuizen, Head of Marketing at MIE. “Of the 652,133 qualification verifications conducted by MIE, 6.59% contained discrepancies, with matric certificates (7.82%) and tertiary short courses (8.28%) the most commonly falsified. Notably, fraud is even higher for international qualifications, with 11% failing verification.”

Criminal background checks: The most requested but still overlooked

Criminal record checks remain the most requested verification, with 939,863 screenings conducted in 2024. Although the risk percentage dropped to 7.15% from 12.38% in 2023, 3.74% of candidates were unaware or dishonest about their criminal records. The demand for cross-border criminal verification is also rising, particularly in logistics, finance, and security.

The growing threat of financial instability

Financial instability among job-seekers is another growing risk. Adverse financial history screenings show risk levels increasing from 16.44% in 2023 to 19.25% in 2024, with debt defaults and judgments on the rise. Industries such as real estate, security, and private education are prioritising financial checks, particularly for roles involving fiduciary responsibility.

Social media: The background check that’s raising red flags

“Employers are also increasingly assessing candidates’ online behaviour as part of the hiring process,” explains Barkhuizen. “Social media screening has surged, particularly in finance, legal, logistics and e-hailing industries, as companies seek to mitigate reputational risks.” 

The report reveals that 69.44% of flagged content is linked to discriminatory remarks, while unprofessional behaviour and online misconduct are also red flags. TikTok and X (Twitter) are the primary sources of problematic content, reinforcing the need for online behaviour checks in hiring decisions.”

Striking the balance: Cost-saving vs thorough hiring

With hiring slowdowns, businesses are streamlining verification processes. The challenge is balancing cost-efficiency with due diligence, and companies must ensure they mitigate risks while keeping hiring processes efficient.

Digital verification tools are emerging as a means for businesses to improve accuracy and speed. Here, features such as automated employment reference checks have boosted response rates by 70%, while real-time tracking systems allow for faster, more transparent screening. 

The future of background screening: AI, biometrics, and beyond

Looking ahead, AI and biometric authentication will assist in identifying, reducing and preventing incidents of fraud; while regulatory compliance in qualification verification and financial risk management will continue to tighten.

“The job market is evolving and so must hiring practices. Fraud is rampant, risks are rising, and the cost of getting it wrong has never been higher. Employers who fail to screen effectively don’t just risk bad hires, but risk their reputation, compliance, and bottom line. Now is the time to act, because in today’s world, trust isn’t given – it’s verified,” concludes Barkhuizen.

To explore the full insights from the 2024 MIE Background Screening Index and see how your business can mitigate hiring risks, visit our new website by click here.