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IOL News
6 days ago
- Business
- IOL News
South Africa's Opposition Parties Criticise Q2 Jobs Data Amid Unemployment Crisis
concerns about growing number of unemplpyed people in the country Image: Ron Lach/Pexels South Africa's second quarter 2025 jobs data has triggered strong criticism from political parties and organised labour, with calls for urgent economic reforms, job creation programmes, and government accountability. They have all warned that the country's unemployment crisis is worsening in real terms. '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,' said Free SA spokesperson Reuben Coetzer. 'We cannot pat ourselves on the back for adding 0.3% more jobs when our working-age population is growing at the same rate, or faster. In realterms, we are standing still, while millions remain jobless.' Free SA argued that the Western Cape's recent rise to become the province with the second highest number of employed people, overtaking KwaZulu-Natal, shows the benefits of a more business-friendly environment. 'The Western Cape's example shows that a more business-friendly environment delivers results. Other provinces and national government must take note,' Coetzer said. The group called for reduced policy uncertainty, the removal of unnecessary regulations, reforms to restrictive labour laws, and urgent improvements to infrastructure and services. The DA's spokesperson on Employment and Labour, Michael Bagraim, said the figures show 'the ANC's economic policies are not working and are only driving more and more South Africans into misery.' He added: 'We cannot do the same thing over and over and expect a different result, which is why the DA's plan to turbocharge the economy is so important.' Bagraim said the DA's plan includes cutting bureaucracy and red tape, scrapping 'job-killing race-based legislation,' ensuring electricity security, improving local government functionality, and reducing crime to encourage investment. 'The time for talkshops is long past. The time to take action is now,' he said. FEDUSA said the high unemployment rate was 'a big setback for the country's economy and many households,' warning that it makes life harder for families, increases poverty and inequality, and slows economic growth. The union federation called for more job opportunities, stronger support for small businesses, improved skills training, and policies that encourage investment. 'With the upcoming National Dialogue, FEDUSA demands that it must produce actionable outcomes on employment creation, decent work, and wage progression, written into a national compact with timelines, deliverables, and accountability mechanisms,' the organisation said. While FEDUSA acknowledged the slight rise in the employment rate, it stressed that 'the increase in the official unemployment rate shows that job creation remains a major challenge for South Africa.' ActionSA leader in Parliament Alan Beesley said the GNU had overseen 'almost 350 000' more unemployed people so far in 2025, describing the government as 'hapless' and 'rudderless.' He accused coalition partners of being 'at odds with their coalition partner, the ANC, on virtually every element of their supposed plan to 'save' South Africa's economy.' 'Minister Meth, if not you, then who will take action?' Beesley said, referencing the Minister of Employment and Labour. He also warned that slow growth, which has not exceeded 1% under the GNU, could face further pressure from 'anticipated new US tariffs.' 'For those impacted, this is not just the absence of work but a suffocating darkness that erodes hope, dignity, and self-worth. According to the expanded definition, 12 million South Africans remain trapped in that darkness,' Beesley said.
IOL News
24-07-2025
- Business
- IOL News
Trade unions criticise lenient sentence for businessman involved in Transnet fraud
Unions criticise Transnet fraud sentence Image: Independent Newspapers Archives Trade unions have criticised the five-year effective sentence handed down to businessman Yakub Ahmed Suleman Bhikhu for defrauding Transnet of R66 million, saying the punishment does not reflect the severity of the crime or the damage caused to workers and the economy. The Federation of Unions of South Africa (FEDUSA) said it 'fully supports and endorses' the position of its affiliate, the United National Transport Union (UNTU), which earlier raised concerns over the sentence. 'Like UNTU, FEDUSA is deeply concerned that the effective five-year sentence, following a conviction in one of South Africa's most egregious State Capture-related scandals, does not reflect the gravity of the crime nor the long-term damage inflicted on workers, the economy, and the integrity of public institutions,' the federation said in a statement. Bhikhu and his company, Homix (Pty) Ltd, were convicted by the Pretoria Regional Court on 81 counts, including fraud, forgery, uttering, money laundering, and contravening the Tax Administration Act. The offences were committed between 2012 and 2015 and caused a loss of about R66 million to Transnet. Bhikhu pleaded guilty and was sentenced to 10 years in prison, with five years suspended, effectively serving five years behind bars. He was also ordered to repay R300,000 to Transnet, while Homix received a suspended fine of R500,000. However, FEDUSA said the sentence 'sends the wrong message' and risks emboldening other looters. 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 ✕ Ad loading 'It undermines confidence in our democratic institutions, particularly the National Prosecuting Authority and the judiciary, whose mandate is to protect the public interest and ensure accountability at all levels of society,' the federation said. Bhikhu was implicated in evidence led before the State Capture Commission. He evaded arrest for six years before being apprehended at the border while trying to enter Botswana. He has been in custody since. The NPA's Investigating Directorate Against Corruption (IDAC) said it welcomed the conviction and sentencing, adding that it was the result of collaboration among law enforcement partners. But FEDUSA insisted that 'until the full weight of the law is brought to bear on those who defraud the state, economic justice will remain elusive'. THE MERCURY
IOL News
21-05-2025
- Business
- IOL News
South Africa's youth unemployment crisis deepens as labour market stagnates
As youth unemployment in South Africa surges to 46.1%, the Federation of Unions of South Africa warns of a deepening jobs crisis that demands a coordinated national employment strategy. As youth unemployment in South Africa surges to 46.1%, the Federation of Unions of South Africa warns of a deepening jobs crisis that demands a coordinated national employment strategy. South Africa's youth are facing an increasingly hostile job market, with new labour force data revealing that nearly half of young people remain unemployed. The Federation of Unions of South Africa (Fedusa) says the first quarter of 2025 marks a worsening trend in youth joblessness, with formal employment shrinking and a growing number of young people entering adulthood without ever holding a job. According to Statistics South Africa (Stats SA), young people aged 15 to 34 account for approximately 50.2% of the nation's working-age population, translating to about 20.9 million individuals. Disturbingly, the 15-24 age group - approximately 10.3 million strong - faces the steepest barriers to workforce entry, with unemployment rates soaring far above their older counterparts. It is explained that the challenges confronting young South Africans are not new; however, the current trends appear increasingly grim. In the first quarter of 2015, the youth unemployment rate stood at 36.9%. Fast forward a decade, and that figure has alarmingly risen to 46.1% in Q1 2025—a staggering 9.2 percentage point increase signalling a bleak future for millions of young individuals. FEDUSA's recent statement highlights a sobering depiction of worsening joblessness, particularly among the youth suggesting a pressing need for a national and coordinated employment recovery strategy underpinned by inclusive economic reform. 'What is particularly alarming is that the decline in employment is concentrated in the formal sector, which shed 245 000 jobs, signalling a contraction in stable, quality employment opportunities. The marginal growth of 17 000 in the informal sector reveals the increasing precariousness of economic activity. This worsening scenario is the cumulative outcome of years of ineffective policies, uneven structural reforms, poor implementation, and insufficient coordination among government departments. While social partners, especially labour, have advanced proposals to stimulate employment, there has been limited political will to drive bold, labour-absorbing interventions with the urgency required.' Recent statistics reveal that the number of employed persons has decreased by 291 000, dropping to 16.8 million from 17.1 million in the previous quarter. Concurrently, the number of unemployed individuals has risen by 237 000, culminating in an unemployment tally of 8.2 million. 'FEDUSA is particularly concerned by persistently high levels of youth unemployment. The decade in review by Stats SA shows that many young people are graduating into adulthood, never having been employed. There were 4.8 million unemployed young people in Q1:2025, nearly 59% of them with no previous work experience. Over the past ten years, youth unemployment has rarely dropped below 40%. This reflects deep-seated labour market barriers, including a structural mismatch between education and economic needs, and insufficient job creation. An estimated 3.7 million young people aged 15–34 are not in employment, education, or training (NEET), representing a significant segment at risk of permanent marginalisation.' Saturday Star
The Star
14-05-2025
- Business
- The Star
South Africa's youth unemployment crisis deepens as labour market stagnates
South Africa's youth are facing an increasingly hostile job market, with new labour force data revealing that nearly half of young people remain unemployed. The Federation of Unions of South Africa ( Fedusa) says the first quarter of 2025 marks a worsening trend in youth joblessness, with formal employment shrinking and a growing number of young people entering adulthood without ever holding a job. According to Statistics South Africa (Stats SA), young people aged 15 to 34 account for approximately 50.2% of the nation's working-age population, translating to about 20.9 million individuals. Disturbingly, the 15-24 age group - approximately 10.3 million strong - faces the steepest barriers to workforce entry, with unemployment rates soaring far above their older counterparts. It is explained that the challenges confronting young South Africans are not new; however, the current trends appear increasingly grim. In the first quarter of 2015, the youth unemployment rate stood at 36.9%. Fast forward a decade, and that figure has alarmingly risen to 46.1% in Q1 2025—a staggering 9.2 percentage point increase signalling a bleak future for millions of young individuals. FEDUSA's recent statement highlights a sobering depiction of worsening joblessness, particularly among the youth suggesting a pressing need for a national and coordinated employment recovery strategy underpinned by inclusive economic reform. ' What is particularly alarming is that the decline in employment is concentrated in the formal sector, which shed 245 000 jobs, signalling a contraction in stable, quality employment opportunities. The marginal growth of 17 000 in the informal sector reveals the increasing precariousness of economic activity. This worsening scenario is the cumulative outcome of years of ineffective policies, uneven structural reforms, poor implementation, and insufficient coordination among government departments. While social partners, especially labour, have advanced proposals to stimulate employment, there has been limited political will to drive bold, labour-absorbing interventions with the urgency required. ' Recent statistics reveal that the number of employed persons has decreased by 291 000, dropping to 16.8 million from 17.1 million in the previous quarter. Concurrently, the number of unemployed individuals has risen by 237 000, culminating in an unemployment tally of 8.2 million. ' FEDUSA is particularly concerned by persistently high levels of youth unemployment. The decade in review by Stats SA shows that many young people are graduating into adulthood, never having been employed. There were 4.8 million unemployed young people in Q1:2025, nearly 59% of them with no previous work experience. Over the past ten years, youth unemployment has rarely dropped below 40%. This reflects deep-seated labour market barriers, including a structural mismatch between education and economic needs, and insufficient job creation. An estimated 3.7 million young people aged 15–34 are not in employment, education, or training (NEET), representing a significant segment at risk of permanent marginalisation. ' Saturday Star
IOL News
01-05-2025
- Business
- IOL News
May Day: Time for Unions to Navigate New Geopolitical Realities
Members of the Congress of South African Trade Unions (COSATU) hold placards and shout slogans in support of a nationwide demonstration in Durban, South Africa, on February 13, 2019 against high unemployment and government policies that are deepening poverty. Dr. Reneva Fourie AS we commemorate May Day – the global day of workers' solidarity and struggle – we are reminded of the ongoing necessity to defend dignity, justice and equality. The landscape of workers' organisation and struggle is evolving swiftly. Remote work is becoming the norm, and labour is increasingly casualised, unpredictable and dispersed as artificial intelligence (AI), automation, and digitisation reshape the global economy. In this context, traditional mechanisms of worker protection, like collective bargaining, are being eroded. Meanwhile, wages and working conditions are deteriorating, with workers barely able to maintain a basic standard of living. The demand for a robust, innovative and unified trade union movement has never been more urgent. In South Africa, however, where poverty and unemployment continue to be high, the situation is particularly acute. A revitalised and united labour movement is essential for confronting the systemic forces underpinning these challenges. Yet, trade union density has declined significantly, with fewer than 30 per cent of workers now unionised. The once-powerful trade union movement is fragmented, with COSATU, FEDUSA, SAFTU and NACTU competing for a shrinking formal sector membership base. Internal rivalries and representational battles have weakened the capacity of organised labour to respond collectively to rising inequality, growing worker precarity, and the challenges posed by rapid technological change. Critically, none of the existing federations have articulated a sufficiently bold or comprehensive strategy to address the structural transformations associated with digitisation, platform work and algorithmic management. However, South African history powerfully demonstrates the transformative potential of organised labour. During the 1980s, the trade union movement was central not only to improving shop-floor conditions but also to the broader struggle against apartheid. It mobilised workers across racial and sectoral lines, linking economic grievances to political demands for democracy and human rights. In the transition to democracy, trade unions successfully negotiated some of the world's most progressive labour laws, including the Labour Relations Act and Basic Conditions of Employment Act. They secured institutionalised worker representation through the establishment of the National Economic Development and Labour Council (NEDLAC). Today, there is a new struggle requiring courage, unity, and strategic dexterity. Capitalism has evolved under the influence of technology, and so must the labour movement. Far from emancipating humanity, contemporary technological innovations have been deployed to deepen exploitation: precarious gig work, freelancing under conditions of insecurity, zero-hour contracts, and pervasive digital surveillance have become widespread. Rather than eradicating inequality, the so-called 'fourth industrial revolution' threatens to entrench it further. Nevertheless, workers remain in the best position to navigate and challenge these new realities. It is workers who continue to sustain the traditional economy and produce, maintain and innovate the technologies driving the systems on which modern life depends. Their creativity and knowledge generation underpin the economy's productive forces. Therefore, workers must not only defend their existing rights but must play a leading role in shaping the future of work itself. This necessitates a shift in strategic orientation for trade unions. Beyond defensive struggles for better wages and working conditions, there is a pressing need to restructure the ownership and governance of production. Such restructuring includes building and supporting worker cooperatives, advocating for workplace democracy, promoting public and common ownership of digital platforms, and securing rights to meaningful, dignified and secure work. Trade unions must place broader social policies at the centre of their demands, including shorter working hours, comprehensive social security, universal healthcare, free and quality education, and affordable housing. They must demand a world where their work serves the whole of humanity, not just the ever more greedy few. Importantly, the struggle for worker power cannot be confined within national boundaries. In a globalised economy where transnational corporations operate across multiple jurisdictions, international worker solidarity is no longer merely a matter of principle but a strategic necessity. The algorithms that manage workers' productivity do not respect national borders, nor do the financial flows that extract value from their labour. Therefore, trade unions must forge international alliances, develop transnational strategies, and participate in global campaigns that contest corporate power worldwide. South African trade unions face a critical responsibility in this regard. They must urgently overcome fragmentation and build a unified, inclusive movement that represents all segments of the working class. They must set aside narrow institutional rivalries and ideological contestation and embrace innovative forms of organisation, including establishing an overarching coordinating body. New models such as platform cooperatives, digital unions, and sectoral bargaining frameworks for gig economy workers must be explored and adopted. Traditional strategies must be adapted to meet the needs of younger, digitally literate, and often highly mobile workforces who may not easily fit into older models of shop-floor organising. Moreover, unions must reorient themselves towards proactive engagement with technological change. They must advocate for worker-driven innovation rather than merely reacting to technological displacement. In this concept, workers actively participate in the design and implementation of new technologies, ensuring that the benefits of these innovations are shared fairly and that technological change is directed towards social good rather than corporate profit. Every campaign for improved wages, working conditions, and labour rights today must be connected to a broader vision of a more equitable and sustainable society. Echoing Karl Marx's insight, the workers' movement must simultaneously address the immediate needs of the working class while carrying within it the seeds of a future beyond exploitation. History shows that when workers come together and organise, they gain the power to improve their lives and impact the course of society. In a world reshaped by technology, inequality, and insecurity, South Africa requires a new generation of trade unionism – one that is bold, forward-looking, ready to defend, organise and empower workers across all sectors, and to humanise the economy in the age of AI and automation. If workers unite in solidarity and vision, they will not only safeguard their livelihoods but also help to create a more just, inclusive and peaceful society for future generations. * Dr Reneva Fourie is a policy analyst specialising in governance, development and security. ** The views expressed do not necessarily reflect the views of IOL, Independent Media or The African.
