logo
Political parties call for action as South Africa's unemployment crisis escalates

Political parties call for action as South Africa's unemployment crisis escalates

IOL News15-05-2025

With South Africa's unemployment rate soaring to 32.9%, political parties are calling for urgent government action.
Image: Freepik
South Africa's unemployment rate has reached a staggering 32.9%, with 8.2 million people officially unemployed and 3.5 million discouraged work-seekers.
The latest Quarterly Labour Force Survey (QLFS) has sparked outrage among political parties, who are demanding action from the government to address the crisis.
According to the report, the total number of employed persons is 16.8 million.
The three industries that employ the most people are trade, employing 3.2 million, community and social services with 3.9 million, and finance employs 3 million people.
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
Next
Stay
Close ✕
However, this quarter has seen a net job loss of 291 000.
Major declines were recorded in trade, which went down by 194 000 while construction declined by 119 000 jobs.
The uMkhonto weSizwe Party (MKP) said it was not surprised by the rising unemployment rate.
'This is yet another indicator of the rapid economic and social collapse under the so-called Government of National Unity (GNU),' MKP spokesperson Nhlamulo Ndhlela said.
'This is a Frankenstein coalition stitched together to serve elite interests, not the people of South Africa…Once again, black youth, black women, and persons living with disabilities, the very backbone of our society bears the heaviest burden of this crisis.
'These are the very groups who are deliberately sidelined from the mainstream economy, locked out by a racially-defined skills economy that still reflects the apartheid architecture of privilege,' Ndhlela said.
The EFF called for practical solutions to stimulate economic activity and ensure mass job creation.
The party's Sinawo Thambo also hit out at the GNU saying they have failed to put in place any practical and believable plan to create jobs and address the crisis of unemployment in South Africa.
The African Transformation Movement (ATM) has highlighted the racial disparities in unemployment, with black Africans bearing the heaviest burden.
'The catastrophic mismanagement of South Africa's economy, underscored by an alarming rise in unemployment that has reached an unprecedented 32.9%, reflects the utter failure of the ANC-DA coalition government to fulfil its obligations to the citizens of South Africa,' the party said.
The ATM has suggested empowering small and medium enterprises (SMEs) through accessible funding and resources, leveraging mineral resources to stimulate job creation, and implementing policies that prioritise employment for South Africans.
Even parties within the GNU weighed in on the matter.
The GOOD Party secretary general, Brett Herron, said South Africa was not just facing an unemployment crisis but a crisis of dignity.
'The latest QLFS confirms what South Africans already feel in their homes and communities - unemployment is getting worse, not better… Every lost job means another family pushed into poverty. Every discouraged worker is a symbol of a broken economic system,' Herron said.
The DA has also emphasised the need for economic growth and job creation.
'Economic growth and job creation are the paramount priority of the government, and the DA's reform proposals and bold agenda should be front and centre to reverse this situation,' said Michael Bagraim, DA spokesperson on Employment and Labour.
Cape Argus

Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Your investment, retirement, and insurance questions answered
Your investment, retirement, and insurance questions answered

IOL News

time4 hours ago

  • IOL News

Your investment, retirement, and insurance questions answered

PSG answers the investment, retirement, and insurance questions. Image: Freepik With industries and trends changing rapidly, I often feel tempted to change my investment strategy (specifically the portion of shares that I've invested in). Can you advise me on how to navigate these "hypes" and remain committed to my financial plan? Alexi Coutsoudis, Wealth Adviser, PSG Wealth, Umhlanga Ridge In today's fast-paced, always-connected world, the sheer volume of investment news and social media commentary can be overwhelming. This constant stream of information and success stories often fuels the urge to adjust investment strategies in response to the latest winners. However, staying focused is essential to preserving your long-term financial plan, as yesterday's winners can become tomorrow's losers. Warren Buffett put it best: 'To invest successfully over a lifetime does not require a stratospheric IQ, unusual business insights, or inside information. What's needed is a sound intellectual framework for making decisions and the ability to keep emotions from corroding that framework.' One of the most effective ways to manage the pressure of 'investment FOMO' is to recognise a key truth: individual stock selection has far less impact on long-term portfolio performance than your overall asset allocation does. In other words, how much you invest in equities matters far more to long-term performance than which specific shares you pick. Even with a few standout stocks, consistently outperforming the market is rare. What's more damaging to long-term returns is being underexposed to equities altogether. That's why your focus should be on aligning your portfolio with your risk tolerance and long-term goals, rather than being tempted to chase the next big thing. Finally, one of the most powerful defences against emotional decision-making is getting caught up in the hype is working with a Certified Financial Planner®. A trusted adviser offers objective guidance, helping you filter out noise and stay committed to your strategy — even when headlines suggest otherwise. Market trends come and go, but a disciplined, well-structured plan is what builds lasting wealth. I am currently working full-time and would like to use a portion of my salary to invest in starting my own business, but I also need to keep paying rent and other living expenses. Do you have advice for how I can achieve this and remain financially stable? Dulcie Weyks, Financial Adviser, PSG Wealth, Waterkloof Starting your own business while working full-time is a smart way to lower financial risk, but it takes planning to stay on track. Begin by understanding your monthly budget. Make sure your essential expenses — rent, groceries, transport, and debt repayments are covered. Then calculate how much of your remaining income you can safely set aside for your business without affecting your day-to-day living. Open a separate account for your business savings and contribute to it regularly. Even a small monthly amount can grow over time and give you a solid starting base. A study by the Kauffman Foundation found that nearly 65% of successful entrepreneurs launched their businesses while still employed, proving that steady progress can pay off. Start small. Choose a business idea with low upfront costs — like a service or online offering — that you can manage in your spare time. This approach keeps your risk low and allows you to test your idea before investing more. It's also wise to build an emergency fund with at least three months' worth of living expenses. This safety net gives you breathing room if the unexpected happens or income is tight for a while. Use your evenings and weekends to build your business gradually. As it grows, you can reinvest profits rather than taking on debt. With a steady income, a clear plan, and the discipline to build step by step, it's entirely possible to start a business without putting your financial stability at risk. I've just started a new job and I'm finally able to start putting additional money away towards my retirement. What do I need to be aware of to maximise my strategy? Kim Wheeler, Wealth Manager, PSG Wealth, Northcliff Only around 6% of South Africans can afford to retire when they hit retirement age. Think of it this way: for every R4,500 to R5,000 per month of income (after tax) you will need for your retirement, you are going to have to have invested R1 million, and then still hope you do not outlive your funds. This is why it is always good to start working on making your retirement secure early in your career. The earlier you start, the better. After all, the 8th wonder of the world is the power of compound interest! But it is never too late. In South Africa, there are several advantages to contributing to a retirement fund: A deduction of up to 27.5% of your taxable income (capped to a maximum of R350,000 per annum) in respect of your contributions is allowed, which reduces your taxable income – so this earns you tax relief. The growth in the investment is not taxed. On retirement, the first R550,000 of all cash lump sums you take is tax-free. Retirement funds fall outside of your estate, so when you die, your heirs can benefit without the burdens of estate duty and executors' fees. Remember that if your retirement fund is your only source of retirement income, you will need to take into consideration that you will pay tax on your income at your marginal tax rate. So, it is always advisable to have some 'discretionary' money set aside to top up your income or to meet unforeseen expenses. A qualified financial adviser can help you draw up a retirement plan tailored to your needs. I haven't started saving for my long-term goals. What's the best strategy for a 10-year investment? Kobie Kritzinger, Wealth Adviser, PSG Wealth, Menlyn Congratulations on taking the first step to start saving towards your long-term goals. Given that you have not started saving yet, you might have to play catch-up and allocate a bigger portion of your budget towards your investment. This means you may have to make some lifestyle sacrifices. The other commitment you have to make is an emotional commitment. Investors underestimate the risk posed by inflation on investments over the long term. There is a perceived sense of safety in having your money in a bank account earning interest. Interest is a wolf in sheep's clothing, because it is taxed and cannot beat inflation over the long term. Growth assets such as local and international equities are the only assets that can beat inflation over the long term. I like to refer to equities as the 'hard-working' money. Your behaviour during the different market cycles will determine the success of your investment, meaning that if you make emotional decisions, it could affect your investment. A qualified and experienced financial adviser can craft an investment plan tailor-made to your unique circumstances and help you stay the course and achieve success. I recently heard about the concept of 'duty of care' regarding car insurance. In the context of car keys, which we often hand over to multiple people in our normal daily interactions, how does this work? Ryno de Kock, Head: Distribution, PSG Insure Duty of care is a legal obligation that all insured parties must take reasonable care to protect their insured assets. There are many situations where you may unknowingly neglect your 'duty of care' requirement when it comes to safeguarding car keys as many of us may find ourselves in situations where we hand over our keys to third parties. While in most cases, it might be handed over to trusted parties, we need to exercise caution in certain situations. Some examples include: The car wash A quick trip to the car wash includes handing keys over without knowing where they are being stored, leaving your vehicle vulnerable to theft. Keep in mind that criminals may attempt to claim your keys without your knowledge by pretending to work for the carwash you are leaving your vehicle at. It is your responsibility to prioritise the safety of your vehicle. It's always best to choose a reputable car wash with clear security measures and protocols in place. Airport parking Leaving your car at the airport for a long period is convenient, but if your arrangement involves handing over the keys for valet or repositioning services, there's a risk of damage or even theft. Before you travel, speak to your adviser to make sure you're covered for any unexpected incidents. Ultimately, ensure you have comprehensive cover in place. Reach out to one of our qualified advisers for more information. PERSONAL FINANCE

Budget 3. 0 will be supported, confirms Mashatile
Budget 3. 0 will be supported, confirms Mashatile

IOL News

time12 hours ago

  • IOL News

Budget 3. 0 will be supported, confirms Mashatile

Deputy President Mashatile assures Parliament of budget 3.0's passage Image: GCIS Deputy President Paul Mashatile has announced that the partners of the Government of National Unity (GNU) have reached a consensus to coalesce around budget 3.0, affirming its imminent support in Parliament. sion, which took place at the Sefako Makgatho Presidential Guesthouse in Pretoria on Friday. The high-profile assembly featured an array of stakeholders, including ministers, deputy ministers, premiers, and director-generals. 'In the Government of National Unity (GNU), we all agreed to support the budget, so there won't be a problem. The budget will go through as presented,' asserted Mashatile, reflecting an optimistic outlook for the budget's acceptance. Last week, Finance Minister Enoch Godongwana presented his budget speech in the National Assembly, marking the third attempt to establish the Fiscal Policy Framework for 2025 after two previous failures to deliver a balanced budget. This year's financial overview transcends the mere presentation of figures; it critically illustrates South Africa's developmental priorities, financial prudence, and the state of political stability within the nation. 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 backdrop to this agreement has been fraught with challenges, particularly following the controversial reversal of a planned 0.5% increase in Value Added Tax (VAT). Godongwana has faced considerable pressure since this retraction, especially as the initial VAT hike, though supported by Parliament, was met with fierce opposition from political parties such as the Democratic Alliance (DA) and the Economic Freedom Fighters (EFF), who contested the decision in court. With this reversed policy, South Africa's national budget now grapples with a troubling R75 billion deficit. As the Minister for Finance, Godongwana is tasked with bridging this fiscal gap without resorting to additional borrowing or igniting further political disputes. IOL

Parties in GNU have all agreed to support the budget
Parties in GNU have all agreed to support the budget

Eyewitness News

timea day ago

  • Eyewitness News

Parties in GNU have all agreed to support the budget

JOHANNESBURG - Deputy President Paul Mashatile said that parties in the Government of National Unity (GNU) had all agreed to back Finance Minister Enoch Godongwana's budget. The fiscal framework will be subject to Parliament's scrutiny in June, as MPs are set to vote for its adoption. This is going to be the second time the fiscal framework is voted on, as the previous one was set aside by the courts. ALSO READ: • Mashatile not worried by EFF's decision to challenge fuel levy increase in court • Mashatile: Many govt challenges a result of political leaders & administrative leadership not pulling together • Mashatile leads governance discussion, says corruption hinders service delivery Mashatile spoke to journalists about the budget on the sidelines of a government event at the presidential guesthouse in Pretoria on Friday. It's been an unprecedented time in South African politics, as for the first time, the African National Congress (ANC) has struggled to get the budget over the line. Despite leading a ten-party coalition government, the ANC had to lobby opposition parties to secure support for the fiscal framework. The deputy president was optimistic that this situation would not arise again, saying that budget 3.0 aligned well with the interests of all GNU members. "In the Government of National Unity, we have all agreed to support the budget. So there won't be a problem. The budget will go through as presented." The Western Cape High Court nullified the adoption of the previous fiscal framework, ruling that it had been passed unlawfully.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into the world of global news and events? Download our app today from your preferred app store and start exploring.
app-storeplay-store