COUNTRY IS BLEEDING JOBS

Urgent reforms needed as South Africa faces deepening unemployment crisis

- TRACY-LYNN RUITERS

THE South African economy is bleeding jobs at an alarming rate and what was once a crisis is turning into an unemployment emergency with experts warning of resultant civil instability.

Nearly 75 000 formal sector jobs were 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 were 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.