Time to back South Africans: cut interest rates, prioritise jobs

SOUTH Africa is facing a job crisis, and it’s worsening. The latest employment figures are hard to stomach: 237 000 jobs lost in the first quarter of 2025, pushing the official unemployment rate to a staggering 32.9%.

- DIEKETSENG MALEKE

That’s 8.2 million people without work. If we include those who’ve given up looking for work, that figure balloons to 12.7m, roughly 43.1% of the workforce.

These aren’t just stats.

Behind each number is a household battling to survive, young people losing hope, and communities on the brink. Unemployment at this scale isn’t just an economic issue, it's a social crisis with far-reaching consequences.

It’s no surprise that poverty continues to tighten its grip. Over half of South Africans, around 55%, live below the poverty line, according to recent data from Stats SA. Crime has ticked up, with SAPS reporting a 6.7% rise in violent incidents like robbery and murder last year. Mental health is under pressure too, as clinics report growing cases of depression and anxiety driven by financial stress. Among the youth, almost 60% are unemployed, and the frustration is palpable.

The risk of social unrest is not abstract, it’s real, and it’s growing.

This is the reality our economy is contending with.

Consumer spending is shrinking. Small businesses are struggling. And economic growth has slowed to a crawl, with just 1% expected this year, after barely managing 0.6% in 2024.