The Foundation for Rights of Expression and Equality (Free SA) expressed deep concern over the latest labour market figures released by Statistics South Africa, which show that the official unemployment rate has returned to 32.9% in the first quarter of 2025, with the total unemployed exactly where it was a year ago. The expanded unemployment rate, accounting for discouraged job seekers, has risen to a staggering 43.1%.
This reversal highlights the failure of the Government of National Unity (GNU) to make meaningful progress in addressing South Africa’s unemployment crisis. The marginal improvements reported at the end of 2024 have been entirely wiped out, revealing the fragility and unsustainability of the gains made.
Free SA’s spokesperson, Reuben Coetzer, commented “The GNU’s approach to unemployment appears to be a revolving door—each quarter, we circle back to the same national emergency. The hard truth is that millions of South Africans remain excluded from the economy, especially our youth, whose unemployment remains catastrophically high.”
Despite this national setback, the Western Cape continues to stand out. Cape Town alone created 86 000 jobs over the past year, underscoring the potential impact of policy certainty, clean governance, and a conducive environment for business.
“While much of the country is sinking further into economic stagnation, the Western Cape is paddling against the current and making headway. It’s not a coincidence, it’s policy that works in action,” said Coetzer.
Free SA calls for urgent action to enable real, private sector-led job creation. This includes:
- Removing policy uncertainty and regulatory red tape;
- Reforming labour laws to incentivise hiring;
- Removing regulations that are keeping foreign investment out of South Africa
- Investing in infrastructure to support enterprise;
- Combating corruption and political interference; and
- Empowering youth with industry-aligned skills and entrepreneurship support.
South Africa’s unemployment crisis is a daily reality for millions. Without bold reform and transparent leadership, these cyclical setbacks will continue to define our economic story.
