Free SA has warned that South Africa’s Q2 2025 year-on-year employment growth of just 0.3% should not be celebrated. Given that this does not even match population growth, 0.3% is essentially an economy in reverse, meaning unemployment is effectively worsening in real terms.
All is not lost, however. Free SA has pointed to the Western Cape, which has become the province with the second-highest number of employed people, overtaking KwaZulu-Natal. This growth is an indication of the way forward, as it shows that a capable government that gets out of the way of business is the best way to get the South African economic machine running. Where it constantly interferes, jobs are lost.
“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 Reuben Coetzer, spokesperson for Free SA. “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 real terms, we are standing still, while millions remain jobless.”
Free SA reiterated its call for the national government to step back from unnecessary regulations, high compliance costs, and anti-growth policies that strangle business. Excessive red tape, restrictive labour laws, policy uncertainty, and failing infrastructure are directly undermining the private sector’s ability to create jobs.
“Our message is simple: enable the private sector, don’t suffocate it,” Coetzer added. “The Western Cape’s example shows that a more business-friendly environment delivers results. Other provinces – and national government – must take note.”
Free SA urges government to take immediate steps to:
- Remove unnecessary regulations that prevent small and medium enterprises from growing
- Reduce policy uncertainty and bureaucratic delays for investors
- Reform restrictive labour laws to encourage hiring
- Improve infrastructure and basic services to support business operations
“South Africa does not have a shortage of talent or ambition – we have a shortage of opportunity,” concluded Coetzer. “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.”
