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IOL News
04-07-2025
- Business
- IOL News
Urgent reforms needed as South Africa faces deepening unemployment crisis
South Africa's jobs crisis: 75,000 jobs lost in Q1 2025 Image: File The South African economy in bleeding jobs at an alarming rate and what was once a crisis is turning into a an unemployement emergency with experts warning of resultant civil instability. Nearly 75,000 formal sector jobs lost in the first quarter of 2025 alone, and 95,000 compared to the same time last year, according to Stats SA. Key sectors like trade, mining, construction, and community services were hardest hit, with only manufacturing showing slight growth. The figures have prompted alarm from economists, labour unions, and mental health experts, who warn that without urgent reform, the country faces entrenched unemployment and broader social fallout. Slow economic growth, policy uncertainty, skills mismatches, and restrictive labour regulations are all seen as major contributors. Abigail Moyo, spokesperson for the trade union UASA, said the latest figures are alarming. 'The Quarterly Employment Statistics reported by Stats SA indicate a contraction in employment, reversing the progress made towards the end of last year. Formal sector employment lost 74,000 jobs in the first quarter, and year-on-year data reveals that 95,000 jobs were lost between March 2024 and March 2025.' She added: 'The industries most affected include trade, community services, mining, electricity, construction, and business services. Only manufacturing showed slight growth, with a gain of 2,000 jobs.' Moyo warned that this will worsen already dire conditions for many workers. 'The current economic outlook is not encouraging and fails to inspire hope... This situation exacerbates the insecurity faced by workers who are already under pressure from high living costs. 'We cannot continue to operate on the brink of a failing economy without any prospects for a better future. We urge both the government and employers to collaborate with trade unions and other stakeholders to rebuild the labour market, focusing on decent work, fair wages, and sustainable employment.' Economist Ulricht Joubert pointed to a range of interlinked problems, beginning with poor economic growth. 'We had a growth rate in total of 0.6% last year compared to a growth in the population of one would guess around about 2%.' He warned that migration and an inflexible labour dispensation were worsening joblessness: 'There is still an influx of people from the rest of Africa into South Africa and that increases the availability of labour in South Africa. If we look at the labour dispensation, where the government tries to instruct and regulate who can be employed in South Africa, and that has a limiting effect. 'The economy never asks you, how old are you? What sex are you? What race are you? The economy only asks, are you capable of doing this specific job in such a way that it is competitive,. domestically and internationally.' He also criticised the cost pressures created by unions and minimum wage regulation: 'If we have to employ people at these minimum wages - Why should I employ a person when a machine can do the job? The productivity has declined from the time that the minimum wages have been imposed on the agricultural sector. 'We have to get the education and training system in South Africa on a footing where employers will say, oh, but you know, if we employ this person because of his qualifications, because of his training, we'll be able to do the job in a competitive way.' He further raised concern over low investment. 'Yes, it's at an unfortunate, very low level if we don't invest, then it creates a problem down the line. Government policies create an uncertain environment and because of that, especially international companies say, "but why? Why should I invest?' Economist Dawie Roodt was unequivocal in placing the blame on the ruling party. 'Why are we losing the jobs in the South African economy? Well, agriculture, is a very volatile sector, so it doesn't really tell us much. So don't look at agriculture, it's all over the place.' 'Manufacturing is much more important because manufacturing is an indicator of where we want economic growth, that's where we can create a relatively large number of jobs, and that is not growing. In fact, we are de-industrialising, we are losing our factories in South Africa.' 'And there's one reason and that's the ruling party. They are simply following the wrong macro-economic policies, and as long as they keep on doing that, the economy is not gonna grow, and as long as the economy is not growing, we're not gonna create jobs in the economy.' Roodt believes the focus needs to shift entirely. 'Actually, we should forget about job creation, and we should put all effort into growing the economy and jobs will look after themselves.' 'The underlying reason is just a government that's not doing what it's supposed to be doing and that's to create an environment that's conducive to economic growth. We certainly do not have that. That's the reason.' Professor Renata Schoeman, head of the MBA in Healthcare Leadership at Stellenbosch Business School, highlighted the emotional cost of rising unemployment. 'Seeing what's going on around them and being faced with colleagues losing their jobs, there is definitely an increase in disengagement.' 'People work harder and harder because they are so scared of losing their jobs, they do not actually take the necessary breaks.' 'The fallout of this additional stressor, the financial stresses, the sense of failure as a provider and especially if they are unsuccessful in finding employment again.' 'Make sure that you don't expect other people to do the work of two or three employees, you burn them out as well.' 'It is very difficult to keep focusing on mental health when someone is in survival strategy... that you do invest in the mental health of your employees.' 'It's just your ethical obligation in terms of leadership, take care of those remaining and those that's going.' Weekend Argus
IOL News
13-06-2025
- Politics
- IOL News
Jobless youth call for practical solutions in National Dialogue
Youth unemployment crisis in South Africa: A call to action. Image: Ron Lach/Pexels In a landscape where high unemployment and socio-economic disparities continue to plague South Africa, the voice of the youth is becoming increasingly pivotal. Abigail Moyo, spokesperson for the trade union UASA, has outlined the urgent need for practical and effective solutions that address the concerns of jobless young South Africans amid President Cyril Ramaphosa's recent address regarding the National Dialogue. The National Dialogue is lauded as a significant step towards generating constructive solutions to some of the country's most pressing issues. However, Moyo cautions that the dialogue may be 'somewhat out of touch with reality', as many South Africans, particularly the youth, are still grappling with the adverse effects of unemployment and inequality. Moyo expressed hope that the Eminent Persons Group, a team of distinguished leaders tasked with guiding the National Dialogue, will focus on the persistent challenges of unemployment and socio-economic difficulties. 'We hope they will help the government develop viable solutions to overcome this national crisis,' she said, highlighting the importance of addressing the grievances of the nation's youth. While acknowledging the expertise and achievements of the Eminent Persons Group, Moyo raised a key concern: the absence of young people in crucial discussions that shape their futures. 'Where are the young people who face the daily challenges of unemployment and inequality? We want to see them contributing to these dialogues and sharing their innovative ideas,' she urged, citing historical parallels with the youth who courageously fought against apartheid in 1976. This call to action is not merely a plea for inclusion; it is an urgent appeal for young voices to be integral in shaping policies that affect their lives. Just as the youth of 1976 played a critical role in reshaping South Africa's future, today's young generation is positioned to lead and contribute towards creating robust solutions for the generations that follow. Moyo advocates for the establishment of a dedicated forum that enables graduates and job seekers to engage in meaningful dialogue surrounding the real-life challenges they face. 'While experience, knowledge, and wisdom are important,' she remarked, 'some proactive solutions come from those who live by the realities and challenges of daily life.' Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Next Stay Close ✕ The trade union spokesperson emphasised that inclusive policymaking should be the order of the day. Young people should be actively involved in decision-making processes, allowing their perspectives to drive meaningful change. 'Practical and effective solutions can only be reached when youth are part of these important conversations,' Moyo asserted. To that end, she encouraged broader society—including stakeholders, leaders, and government—to join forces in the quest for a prosperous future. 'It is everyone's responsibility to ensure that things work inclusively, with sufficient support to achieve these goals, thus shaping a better future for our country,' she concluded. BUSINESS REPORT Visit:
IOL News
26-05-2025
- General
- IOL News
Marikana shack fire claiming six highlights need for safety education in informal settlements
Six family members, including toddlers and parents have died in an intense shack fire at Marikana informal settlement in Ekurhuleni. UASA calls on the government to fund safety initiatives and education to protect residents of informal settlements against the devastating terror of shack fires without delay. UASA is deeply saddened by this morning's preventable loss of six family members, including toddlers, who perished in a devastating shack fire at the Marikana informal settlement in Ekurhuleni, Gauteng. Only one family member, a young girl, survived the blaze. She escaped with critical burn injuries and is currently receiving medical care. When emergency services arrived at the scene, the home of the seven family members had already been destroyed by the fire while they were trapped inside, sleeping. This tragedy has caused devastating distress for the surviving family members and the local community. The cause of the fire is currently undetermined, raising concerns among residents. During the winter season, fires in residential areas, particularly in informal settlements, pose a persistent challenge that must be addressed promptly to prevent further loss of life. Illegal electricity connections and flammable fuels for cooking and heating, such as gas and paraffin, are the main issues contributing to these devastating outcomes. Informal settlements are home to many, and the safety of our residents is essential. UASA encourages everyone to be vigilant about fire dangers, educate adults and children on safety, and take necessary precautions. Do not leave young children unsupervised. Turn off heaters and gas stoves before turning in for the night. Seek alternatives to keep warm without endangering families and loved ones. We urge the government to assist with safety initiatives and education to protect our communities. To further address this challenge, UASA urges government to accelerate the provision of formal housing for South African citizens. Access to proper housing is a basic human right and a critical step toward reducing the risk of disasters such as shack fires. By investing in permanent, secure housing with safe infrastructure, government can help ensure the dignity, safety and well-being of vulnerable communities while preventing future tragedies of this magnitude. Losing lives in such tragic, preventable ways should never become the norm. South Africans, especially young children, must be protected from harm. Abigail Moyo, spokesperson of the trade union UASA
IOL News
08-05-2025
- Business
- IOL News
Fuel price decrease brings relief to South African households and businesses
The agriculture sector, economists, and workers' trade unions have responded well following the news of a decrease in the petrol price which came into effect on Wednesday. The agriculture sector, alongside economists and trade unions, have expressed optimism following the recent announcement of a fuel price decrease in South Africa. Minister of Minerals and Petroleum Resources Gwede Mantashe, revealed on Friday that the reductions apply to all grades of petrol and diesel, with petrol prices seeing a reduction of 22 cents per litre and diesel dropping by as much as 42 cents per litre. An economics professor at the North-West University, Waldo Krugell, said even modest reductions in fuel prices can lighten household budgets. 'In the macro picture, it also helps to keep the average inflation rate low. It is good news for households and businesses,' Krugell said. 'In addition, we were worried about the impact of the VAT rate increase, but that is now off the table. With these positives, consumption spending may still make a significant contribution to driving economic growth this year.' Abigail Moyo, spokesperson of the trade union UASA, said that the decrease in fuel prices was excellent news for motorists, commuters, and businesses, especially those in agriculture. 'Lower fuel prices provide financial relief to South Africans and substantially impact inflation, which affects the overall cost of living.' Moyo added that for the agriculture sector, the lower cost will help reduce production costs during increased fuel demand due to the summer crop harvest and the planting of winter crops. 'Fuel accounts for nearly 13% of input costs in grain production. UASA is pleased that this decrease in fuel prices will help contain food inflation and overall headline inflation, providing the South African Reserve Bank with the opportunity to lower or maintain interest rates at beneficial levels for consumers.' Congress of South African Trade Unions (Cosatu) spokesperson Matthew Parks said the fuel price decrease will provide relief for millions of workers and commuters struggling to cope with the rising costs of living. 'Whilst appreciating this relief, it's critical that the government returns to engagements at Nedlac on further measures to reduce the costs of fuel,' he said. Parks added that it's equally critical that measures to support Eskom to provide affordable electricity be expedited and similarly measures to ensure Transnet and Metrorail return to full productivity to help shield food and passenger rail from inflation. Mervyn Abrahams, co-ordinator for the Pietermaritzburg Economic Justice and Dignity (PMBEJD), said that petrol was one of the important components in the food ecosystem because it ensured the movement of goods from the production point to the consumption point, with other factors also coming into play. 'Our household affordability index has shown that food prices continued to climb in April. While this fuel price drop is the fourth one in the year, this does not seem to have filtered through to consumers. We would like to see consumers benefiting from the fuel drop.' Abrahams added that there should not be a compromise on food and access to food because of fuel prices. Wandile Sihlobo, chief economist of the Agricultural Business Chamber of South Africa (Agbiz), said that the easing of the fuel price came at a critical time for South Africa's agriculture. 'Fuel consumption generally occurs throughout the year, but harvesting is one of the highest usage periods. We are harvesting grains, oilseeds, and citrus. The underpinning driver of the decline in fuel prices is the decrease in Brent crude oil prices, which are influenced by increased oil output in major producers, among other factors,' he said. BUSINESS REPORT
