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Unemployment rate rises to 33. 2% as political parties push for urgent economic reforms
Unemployment rate rises to 33. 2% as political parties push for urgent economic reforms

IOL News

time2 days ago

  • Business
  • IOL News

Unemployment rate rises to 33. 2% as political parties push for urgent economic reforms

The latest data from South Africa's Quarterly Labour Force Survey (QLFS) for Q2 2025 reveals an alarming rise in the unemployment rate, which has increased to 33.2% from 32.9% in the previous quarter. 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.' Saturday Star

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