This report entitled 'Job Opportunity and Unemployment in the South African Labour Market' notes that few jobs are being created for a large number of job seekers.
The report intends to guide policymakers about the skills shortages in order to develop ways to fight unemployment, inequality and poverty in the country.
According to the report the skills mismatch remains a problem in the labour market as workers battle to move from being unskilled to becoming semi-skilled or skilled workers.
"This is proven by the high demand for professionals and managers and the low demand for machinery operators, drivers, elementary workers and sales staff it says.
In its report, the department says South Africa's labour market's recovery remains fragile, highlighting the difficulty of reducing the unemployment rate, especially among youth.
Out of 4.5m jobless people recorded in March this year, 71% are youths, 67% have been unemployed for more than a year and 47% had not completed secondary school. About 31% of the unemployed were new entrants into the labour market.
According to the report, South Africa as a small open economy is not alone in terms of youth unemployment as similar problems are experienced overseas.
The report notes that there has been a shortage of jobs in South Africa for a sustained period.
