The Job Emergency No One Can Ignore: Inside South Africa’s Deepening Unemployment Crisis

It is no longer just a crisis. South Africa is now facing what experts are calling a full-blown employment emergency, with job losses mounting, public frustration rising, and warnings of social instability growing louder by the day.

In the first quarter of 2025 alone, the country lost 74,000 formal sector jobs, according to Stats SA. That number climbs to 95,000 jobs lost year-on-year when compared to March 2024. From mining and construction to trade and community services, few sectors have been spared, and the emotional and economic toll is becoming impossible to ignore.

A Bleeding Economy, A Fading Future

Labour union UASA is among those ringing the alarm. Spokesperson Abigail Moyo has called the latest statistics deeply concerning, noting that even the slight gain of 2,000 jobs in manufacturing is overshadowed by a broader wave of job erosion. The loss of work in trade, business services, electricity, and mining is not just a number; it reflects real households slipping further into crisis.

For many South Africans, the hope that fuelled job recovery in late 2024 is now fading. What was once a setback is becoming systemic.

Anxious Workers and a Strained Society

The damage is not just economic. According to Professor Renata Schoeman from Stellenbosch Business School, the psychological effects of rising job losses are showing up in burnout, disengagement, and emotional fatigue. Employees are working harder for fear of being next. Others are juggling the work of two or three people due to retrenchments, pushing themselves into survival mode.

In workplaces across the country, stress is peaking, and support is often lacking. “There’s an ethical obligation for leadership to invest in the mental health of those staying and those going,” Schoeman said.

What’s Really Causing the Job Collapse?

According to economist Ulricht Joubert, the root of the problem is slow, stagnant growth. South Africa’s economy grew by just 0.6% in 2024, while the population expanded by around 2%. That imbalance means fewer opportunities and more competition for every role.

Joubert also pointed to policy uncertainty, poor investment levels, and a rigid labour framework that discourages hiring. “The economy does not care about your age, gender, or race. It only asks, ‘Can you do the job, and can you do it competitively?'” he said.

He criticised government regulation and labour restrictions for discouraging employers from taking on new workers, particularly in sectors like agriculture and manufacturing. The rise of automation, he warned, is being accelerated by high wage requirements and declining productivity.

Image 1: IT News Africa

‘Forget Job Creation, Grow the Economy First’

Economist Dawie Roodt did not mince words. He pinned the crisis squarely on what he called “wrong macro-economic policies” by South Africa’s ruling party. According to him, the country is de-industrialising and losing factories, not because of global trends, but because of bad policy and poor leadership.

He argued that South Africa should shift its focus from job creation to economic growth, suggesting that jobs will follow naturally when the economy becomes more conducive to investment and business development.

“If the environment is not right for growth, the jobs won’t come,” he said.

What Needs to Change and Fast

Experts agree that reform cannot wait. Policy clarity, real investment in education and training, a modernised labour framework, and targeted economic stimulus are urgently needed.

Unions like UASA are calling for collaboration between government, employers, and workers, demanding a renewed focus on decent work, fair wages, and sustainable employment. Without these changes, the fear is that unemployment will not just erode the economy but the very fabric of society.

A Country at a Tipping Point

Behind the headlines are millions of people: young graduates with no prospects, parents unable to provide, and skilled workers quietly giving up. For many, the crisis is already here. And unless urgent action is taken, it will not be long before the social cost becomes too high to pay.

South Africa is bleeding jobs, and the call is clear: reform, or risk collapse.

Also read: Gayton McKenzie Declares US and South Africa “Family” Amid Rising Global Tensions

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Source: IOL

Featured Image: The Financial Express