Unemployment rate rises to 33. 2% as political parties push for urgent economic reforms
This surge, attributed to an additional 140 000 people joining the ranks of the unemployed, has sparked concerns from political parties and economic analysts alike.
The Democratic Alliance (DA) has been one of the loudest voices seeking accountability, with its leaders emphasising the critical need for reform.
'South Africans will continue to struggle for work if small businesses have to comply with the same regulations as massive corporations or operate against headwinds of BEE under cronyism.'
The party also asserts that the pathway to reviving the economy lies in a comprehensive plan that addresses impediments faced by small businesses at all government levels.
Equally concerning is the situation in Limpopo, where the unemployment rate has surged by 0.6 percentage points, from 34.4% in Q1 to 35.0% in Q2. The region's expanded unemployment rate, which accounts for discouraged job seekers, remained stagnant at 43.8%.
'The gap shows that whatever gains the national economy is making are not translating into improvements here,' said local DA officials.
Build One South Africa (BOSA) has also highlighted the grim realities echoed by these statistics, noting that South Africa's unemployment rate of 42.9% remains among the highest globally.
According to BOSA, there are now 12.6 million South Africans out of work, a number that includes both the unemployed and those who have lost hope in finding work. 'If every unemployed person stood in a queue, it would stretch nearly 6 300 km,' the party said.
Despite these harrowing figures, there are glimpses of hope. Free SA has pointed out that the Western Cape has become the province with the second-highest number of employed individuals, surpassing KwaZulu-Natal.
This success story is attributed to effective governance that fosters business growth with minimal interference. Reuben Coetzer, Free SA's spokesperson, said, 'Jobs give dignity and independence, but the current pace of growth is far too slow to make a dent in South Africa's unemployment crisis.'
Furthermore, the meagre 0.3% year-on-year employment growth should not be celebrated when it fails to keep pace with population growth.
'South Africa does not have a shortage of talent or ambition, we have a shortage of opportunity. The only way to break the back of unemployment is to let enterprise lead the way. Government must stop being the problem and start being the enabler.'
anita.nkonki@inl.co.za
Saturday Star
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Star
21 minutes ago
- The Star
Joburg mayor blames DA-led coalition as city faces R24. 4bn wasteful spending crisis
Simon Majadibodu | Published 7 hours ago Joburg Mayor Dada Morero has blamed the previous DA-led administration for the city's ballooning unauthorised, irregular, fruitless and wasteful expenditure, which has reached R24.4 billion over the past year. Speaking at a media briefing on Thursday, Morero confirmed he had submitted a comprehensive financial recovery plan to Finance Minister Enoch Godongwana, who had given the City of Johannesburg 14 days to respond after raising alarm over its financial mismanagement. This comes after Auditor-General, Tsakani Maluleke, flagged serious governance failures, including poor financial controls, weak revenue collection and chronic underinvestment. The National Treasury has cautioned that failure to resolve the crisis could result in the withholding of national grants. Morero said he received the letter from Godongwana on July 30, 2025, outlining the minister's concern over the city's ongoing non-compliance with the Municipal Finance Management Act (MFMA), specifically relating to unauthorised and irregular expenditure. 'The Honourable Minister requested that I respond within 14 days. I can confirm that I have now submitted a comprehensive response on behalf of the City of Johannesburg,' Morero said. The response, he said, includes a full account of the issues behind the R23.6 billion in unauthorised, irregular, fruitless and wasteful expenditure as reported in the city's 2023–2024 financial statements. Morero, who has served as mayor since August 2022, again blamed the Democratic Alliance-led coalition, which governed the city between 2016 and 2021. He previously served as an MMC for Finance at the metro in 2023. 'Our beloved city endured a period of mismanagement and poor leadership under the DA-led coalition. The R23.6 billion is a cumulative figure that increased progressively over several years, largely unaddressed and not regularised as required by the MFMA,' he said. He broke down the R23.6 billion figure, which includes R13 billion (55%) in unauthorised expenditure, R9.9 billion (42%) in irregular expenditure, and R735 million (3%) in fruitless and wasteful expenditure. Morero said most of the unauthorised spending, comes from bulk purchases of electricity and water that exceeded the approved budget. 'These bulk purchases are driven by resident consumption as well as both technical and non-technical losses during service delivery,' he said. Irregular expenditure mainly arose from procurement processes that failed to comply with supply chain regulations. 'It's important to clarify that irregular or unauthorised expenditure doesn't necessarily mean that the goods or services weren't received. It points to non-compliance in procurement procedures,' he said. Morero said to address these issues, he implemented key interventions including an enhanced expenditure reduction strategy focused on investigations, consequence management, and regularisation of non-compliant spending in line with MFMA Section 32.2. He said he also re-established the city's disciplinary board for financial misconduct and initiated criminal proceedings where necessary. 'In February 2025, I approached President Cyril Ramaphosa for technical support through the Presidential Working Group,' Morero added. He said the city also established a 'War Room' and introduced a 'Bomb Squad' to oversee financial recovery and monitor service delivery progress weekly. These interventions, he claimed, are beginning to show results. 'As of June 30, 2025, R12.9 billion of the R23.6 billion has been regularised. The balance of R6.7 billion is under investigation. The remainder has been investigated and is now being processed by municipal committees,' he said. Morero said he expects a 'significant reduction' in irregular expenditure in the city's 2024–2025 annual financial statements. He said the disciplinary board has completed preliminary investigations into six matters totalling R535 million, with outcomes to be presented to the Council during its next ordinary sitting. On July 31, the Council approved 12 further matters for investigation, amounting to R2.5 billion. These relate to alleged financial misconduct and unresolved unauthorised expenditure. Morero also claimed there were improvements in revenue collection through the War Room initiative, with the city achieving an 87% collection rate between April and June 2025 - a 2.7% increase from the same period last year. He said the city is now targeting a sustainable daily revenue collection of R200 million. 'The impact of the Presidential Working Group and Bomb Squad is beginning to be visible through accelerated service delivery,' he said. He said a new board has been appointed to oversee municipal entities, while oversight through the Group Audit Committees and the Mayoral Committee is being strengthened. He added, 'Reducing unauthorised, irregular and fruitless expenditure is now a key performance indicator for senior managers. The disciplinary board will continue expediting investigations into allegations of financial misconduct.' [email protected] IOL Politics
Eyewitness News
23 minutes ago
- Eyewitness News
More than 11 million South Africans are members of stokvels
For decades South Africans have made use of stokvels, where they pool money for important occasions. These operate like a rotating credit union or saving scheme, and the money can be used for anything from weddings and funerals, to supporting a business to buying property. Members of a stokvel will contribute to a common pool and can draw it out on a rotational basis. According to Lukhele, more than 11 million South Africans are believed to be members of stokvels. RELATED: Stokvels going digital: Transforming community savings in the tech age
Eyewitness News
4 hours ago
- Eyewitness News
Presidency: Ramaphosa, Mbeki's relationship remains 'cordial' despite National Dialogue differences
JOHANNESBURG - The Presidency said the relationship between Cyril Ramaphosa and former statesman Thabo Mbeki remains 'cordial' despite disagreements over the National Dialogue. Mbeki, through his foundation, has announced he will no longer be participating in the dialogue and has rejected an invitation to attend Friday's convention. The former president has for years been pushing for a National Dialogue; however, he is now complaining that the event has been taken over by the government and is no longer led by citizens and civil society. At a media briefing in Pretoria on Thursday, Presidency spokesperson Vincent Magwenya said Ramaphosa respects and acknowledges all criticisms. 'One would have loved and it would have been great to have the former president there but if he is not there, he is not there. The reality is the show will go on and South Africans will continue with the dialogue process and hopefully at some point, not only the Thabo Mbeki foundation but also other foundations will find it among themselves to participate in the process.'
