6 days ago
PSA proposes steps for government to take to tackle unemployment crisis
South Africa's rising unemployment is a crisis that demands co-ordinated, bold and inclusive action.
The Public Servants' Association (PSA) made this comment after the latest unemployment figures released by Stats SA this week showed a rise in the official unemployment rate to 33.2% in the second quarter of 2025, up from 32.9% in the previous quarter. This marked the third consecutive quarterly increase and brought the total number of unemployed South Africans to 8.4-million.
'This situation underscores the persistent structural challenges facing the country's labour market,' the PSA said.
It said while employment gains were recorded in sectors such as construction, mining and private households, these were overshadowed by significant job losses in finance, agriculture, community and social services, and transport.
'The PSA is particularly alarmed by the decline in employment in the financial services sector, traditionally a key driver of economic growth and job creation.'
The union noted the disturbing statistics regarding youth unemployment and the 'not in employment, education or training (NEET)' rate, which remained above 43% for people aged 15-34.
'This reflects a growing disengagement of young people from the labour market and education system, posing long-term risks to social stability and economic development.'
The union urged the government to accelerate labour-intensive public infrastructure projects to absorb unemployed youth and low-skilled workers. Support was also required for small and medium enterprises through targeted funding and regulatory reform to stimulate job creation.
'It is critical to strengthen vocational training and skills development programmes, particularly in rural and underserved communities.'
There was also a need to ensure transparency and accountability in the implementation of employment stimulus packages.
'The PSA calls on Stats SA to expedite its planned revisions to the labour force survey methodology to better capture informal-sector employment. This may provide a more accurate picture of economic activity and inform more effective policy responses.'
