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IOL News
5 days ago
- Politics
- IOL News
Sadtu calls for urgent measures to address youth unemployment
The South African Democratic Teachers' Union (Sadtu) said it salutes the youth of 1976 for their bravery, unity, and undying spirit. This year's Youth Month is observed under the theme: 'Skills for the Changing World – Empowering Youth for Meaningful Economic Participation.' To fully grasp the significance of 16 June, one must understand the bleak landscape of South Africa in the 1960s and early 1970s. This day pays tribute to the brave young people who, on June 16, 1976, rose in protest against the apartheid regime's imposition of Afrikaans as a medium of instruction in black schools. Armed with nothing but courage and stones, they confronted the brutal machinery of the apartheid state. Many were killed, arrested, and injured, but their resistance ignited a wave of defiance that accelerated the struggle for liberation. According to Statistics South Africa's Quarterly Labour Force Survey (QLFS) for the first quarter of 2025, youth unemployment remains alarmingly high. The total number of unemployed youth rose by 151,000 to 4.8 million. At the same time, the number of employed youth declined by 153,000 to 5.7 million. This pushed the youth unemployment rate from 44.6% in Q4 of 2024 to 46.1% in Q1 of 2025. The union said this year's theme resonates with its 10th Congress theme which emphasise the strengthening of foundational learning and functional skills to advance inclusive and sustainable economic growth. 'For many young South Africans, skills for the changing world are out of reach. Many lack access to quality education and skills development opportunities. Others, despite having qualifications, find that job opportunities are few and shrinking,' the union said. The union said it calls on the private sector to rise to the challenge to:. Invest in quality education and training that responds to the demands of the Fourth Industrial Revolution. Expand access to vocational, artisan, and technical training. Support youth entrepreneurship and innovation. Prioritise youth employment in both public and private programmes. 'As SADTU, rooted in the education sector, we reaffirm our commitment to support initiatives aimed at skilling the youth. But beyond just skills, we advocate for a holistic education system that builds caring, tolerant, patriotic, and socially responsible citizens. To fail our youth today is to betray the sacrifices of the 1976 generation. Let us honour their legacy by empowering today's youth to shape a better tomorrow not from the margins, but from the centre of our society and economy,' the statement concluded.

IOL News
13-06-2025
- Business
- IOL News
The real story behind South Africa's unemployment figures
South Africa's unemployment rate has risen to 32.9%. Image: File SOUTH Africa's unemployment rate is a lightning rod for political debate, economic anxiety, and public frustration. In the wake of Capitec CEO Gerrie Fourie's claim that the 'real' unemployment rate is closer to 10%, far below Statistics South Africa's official 32.9%, the national conversation has reignited. Critics of Statistics South Africa (StatsSA) suggest that the official figures are not just technical measures but political artefacts that erase the economic activity of millions in the informal sector. But does this criticism stand up to scrutiny? The answer is more nuanced than the headlines suggest. Capitec CEO, Gerrie Fourie. Image: Supplied 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 ✕ Why Would Anyone Overstate Unemployment? Let's start with the most provocative claim: that StatsSA and the government have a motive to overstate unemployment. This accusation defies both political logic and institutional practice. High unemployment is a political liability, not an asset. It invites criticism, undermines investor confidence, and puts government performance under the microscope. If there were any incentive, it would be to understate the problem, not exaggerate it. A trend we see in a number of African countries where the official unemployment rates are so low they defy logic and reality. StatsSA is an independent institution that, while not perfect, has a lot of credibility. Its data is scrutinised by economists, international agencies, and the media. Any manipulation or systematic bias would be quickly exposed by these watchdogs. In reality, the agency's credibility depends on its objectivity and adherence to global standards. Does StatsSA Ignore Informal Work? The Evidence Says No A central argument in the current debate is that StatsSA's methodology 'renders millions invisible' by failing to count informal work. This is simply not true. StatsSA's Quarterly Labour Force Survey (QLFS) is designed to capture all forms of work, including informal jobs, self-employment, and unregistered businesses. The QLFS asks about any activity, formal or informal, that brings in income, whether it's selling vetkoek, running a backyard salon, or hustling as a car guard. If you worked for at least an hour in the reference week, you're counted as employed. Both current and former statisticians-general have clarified that informal work is counted, as required by the International Labour Organisation (ILO) standards. Recent Stats SA research confirms that the informal sector employs about 19.5% of the workforce, nearly one in five jobs. This includes street vendors, home-based businesses, and unregistered enterprises, all of which sustain households and fuel local economies. Comparing Apples and Oranges: International Context The arguments supporting Fourie's claims point to countries like India, Brazil, and Zimbabwe, where unemployment rates are low despite massive informality, and suggest South Africa is an outlier. But this comparison ignores key differences: Economic Structure: South Africa's informal sector is smaller than in many developing countries, partly due to regulatory and historical factors. In India, almost any economic activity, no matter how marginal, is counted as employment, even if it's not enough to survive on. Definitions Matter: Some countries use looser criteria for employment, counting sporadic or survivalist activity as work. South Africa's approach is more rigorous, aiming to distinguish between meaningful employment and mere survivalism. Policy Hostility: South Africa's informal sector faces regulatory barriers, policing, and licensing bottlenecks that suppress its growth, unlike in countries where informality is the norm and often the only option. Is the Quarterly Unemployment Report Flawed? StatsSA's quarterly unemployment report is not methodologically flawed. There is also no evidence that it is politically manipulated. The agency publishes detailed methodological notes, welcomes peer review, and its data aligns with other indicators of economic hardship, like sluggish GDP growth, high poverty, and social grant dependency. If millions of informal workers were being missed, we'd see glaring inconsistencies elsewhere, which we do not. The QLFS is transparent about its limitations and is constantly evolving. For instance, the latest data shows that while formal sector employment decreased, informal sector employment actually increased by 17,000 in the first quarter of 2025. This demonstrates that informal work is not only counted but also tracked over time. The Real Issue: Structural Barriers, Not Statistical Tricks The real challenge is not statistical invisibility but structural exclusion. South Africa's informal sector is not as robust as in other developing countries. Regulatory barriers, monopolistic competition, and a lack of support mean that informal work is often precarious and low-paid. The country's economic structure is dominated by large corporations, making it hard for micro-enterprises to thrive. Even where state policy recognises informal activity, it rarely dismantles the barriers that prevent informal traders from scaling up. The shift in informal enterprises toward home-based operations and the stagnation of licensing reveal a sector that is surviving under constant threat, not thriving. Hybrid Measurement: A Welcome Innovation, Not a Silver Bullet Calls to supplement survey data with financial transaction records and digital platform data are valid and should be explored. Capitec's own data on township transactions could offer valuable insights. But these are refinements, not fundamental corrections. The current statistics are not a 'mirage'; they are a sober reflection of a society where too many are locked out of meaningful work, formal or informal. Let's Fix the Economy, Not the Messenger It is true that black South Africans face disproportionately high unemployment rates and that the legacy of apartheid continues to shape economic opportunity. But this is not the result of statistical erasure; it is a reflection of structural realities. StatsSA's data exposes these inequalities; it does not create them. Nco Dube a political economist, businessman, and social commentator. Image: Supplied

The Star
26-05-2025
- Business
- The Star
ActionSA writes to President Ramaphosa demanding dismissal of employment minister
ActionSA has written to President Ramaphosa, requesting that he dismiss the Minister of Employment and Labour, Nomakhosazana Meth, for her clear failure to arrest the deepening unemployment crisis that continues to erode hope, dignity and opportunity for millions of South Africans. The latest Quarterly Labour Force Survey (QLFS), Q1:2025, paints a dire picture: The official unemployment rate rose to 32.9%, up from 31.9% the previous quarter. A staggering 8.2 million South Africans are now unemployed, with an additional 3.5 million discouraged work-seekers. 291 000 jobs were lost in the first quarter alone – the first such Q1 contraction since 2021. This equates to more than 24,000 jobs lost each week, and almost 5 000 each workday. The proportion of young South Africans aged 15–34 who are not in employment, education, or training (NEET) rose to 45.1% in Q1:2025 — a devastating indicator that nearly half of our youth have been left without opportunity, support or a path to a better future. There is a glaring absence of any meaningful strategy, either in planning or implementation and despite full awareness of South Africa's worsening unemployment crisis, Minister Meth has failed to present a coherent plan to stem job losses, support the informal economy or tackle the systemic barriers that keep young people out of the workforce. In November 2024, ActionSA asked Minister Meth whether she would resign should the country's distressing unemployment figures continue to rise. Her response was blunt and unapologetic: 'Unfortunately, I won't resign.' This laid bare a disturbing indifference to the suffering of millions of South Africans. It is an attitude that reflects the posture of an uncaring government that has grown comfortable with failure while ordinary citizens pay the price. Nearly a year into her tenure, Minister Meth has not demonstrated the urgency, capacity or leadership required to respond to this economic and social emergency. South Africa's working-age population cannot afford further stagnation under ineffective stewardship. The absence of meaningful performance management for GNU Ministers has created a culture where failure carries zero consequence. In any functional democracy, such dismal figures amid worsening socio-economic conditions would compel a Minister to take responsibility and step down. Sadly, this standard of accountability is sorely lacking in South Africa and glaringly absent in the Ramaphosa-led administrations. ActionSA believes that something has to give. Sitting on our hands while millions suffer is simply not an option. We are committed to using every available lever to ensure that South Africa's unemployment crisis is addressed with the urgency it demands. Alan Beesley MP, ActionSA Member of Parliament


The Citizen
22-05-2025
- Business
- The Citizen
43 000 Mpumalanga residents lose jobs in first quarter of 2025
The country celebrated Workers' Day on May 1, but about 43 000 Mpumalanga residents lost their jobs in the first three months of this year. These unfortunate people are unlikely to have joined the celebrations. Stats SA released the Quarterly Labour Force Survey (QLFS) for the first quarter of 2025 on Tuesday, May 13. The results for the first quarter of 2025 show that the total number of unemployed youth (15 to 34 years) increased by 151 000 to 4.8 million, while employed youth recorded a decrease of 153 000 to 5.7 million. As a result, the youth unemployment rate increased from 44.6% in the fourth quarter of 2024 to 46.1% in the first quarter of 2025. ALSO READ: Public warned against illegal sand mining Currently, youth unemployment in Mpumalanga is at 46.4%, one of the highest in the country. Unemployed jobseekers stand on the sides of the roads in Mbombela every day, seeking temporary job opportunities. During an interview with a jobseeker in the CBD, Carol Ndlovu (not her real name) said due to the high number of unemployed people in the area it has become difficult to find permeant employment. Ndlovu said many people prefer to clean their own homes and the increase in unemployed people has made it more difficult to find work opportunities. 'The hardest days are when I have to borrow money for the bus fee, yet I go home without any money. Some days we go home without anyone offering us work and this means I do not get to raise money for transport to go back home. I tried to apply for work, however, I struggled to find opportunities. I have a family, so I decided to wake up every morning, get onto a bus and leave my township so that I might put food on the table.' Siyabonga Maziya, another unemployed resident, said they face various challenges in their quest to make ends meet. 'We sometimes stand on the side of the road and we are unable to take money home because we could not find any opportunities. We have tried to apply for jobs but we are not getting anything.' ALSO READ: High court orders that assets be seized after alleged R5m Covid-19 PPE fraud uncovered In a statement, Grovè-Morgan said the DA is concerned that over 40 000 residents of the province have lost their jobs in the first quarter of this year. The QLFS report also revealed that the majority of the job losses were in the agriculture, mining and construction sectors. 'These job losses paint a very bleak picture of Mpumalanga's job market, where the unemployment rate increased to 35.4 % from 34.7% at the same time last year. Furthermore, the number of discouraged work seekers (expanded unemployment rate) in Mpumalanga increased to over 2.5 million (49.3%) out of a population of 5.1 million. 'The province's lost generation, the youth, contributes significantly to the expanded unemployment rate. This is a crisis that needs to be tackled by both the provincial government and the private sector.' The newspaper contacted the Office of the Premier for a comment and was referred to the Department of Economic Development and Tourism. By the time of going to press the department had not responded to the enquiry. At Caxton, we employ humans to generate daily fresh news, not AI intervention. Happy reading!

IOL News
15-05-2025
- Business
- IOL News
Political parties call for action as South Africa's unemployment crisis escalates
With South Africa's unemployment rate soaring to 32.9%, political parties are calling for urgent government action. Image: Freepik South Africa's unemployment rate has reached a staggering 32.9%, with 8.2 million people officially unemployed and 3.5 million discouraged work-seekers. The latest Quarterly Labour Force Survey (QLFS) has sparked outrage among political parties, who are demanding action from the government to address the crisis. According to the report, the total number of employed persons is 16.8 million. The three industries that employ the most people are trade, employing 3.2 million, community and social services with 3.9 million, and finance employs 3 million people. 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 ✕ However, this quarter has seen a net job loss of 291 000. Major declines were recorded in trade, which went down by 194 000 while construction declined by 119 000 jobs. The uMkhonto weSizwe Party (MKP) said it was not surprised by the rising unemployment rate. 'This is yet another indicator of the rapid economic and social collapse under the so-called Government of National Unity (GNU),' MKP spokesperson Nhlamulo Ndhlela said. 'This is a Frankenstein coalition stitched together to serve elite interests, not the people of South Africa…Once again, black youth, black women, and persons living with disabilities, the very backbone of our society bears the heaviest burden of this crisis. 'These are the very groups who are deliberately sidelined from the mainstream economy, locked out by a racially-defined skills economy that still reflects the apartheid architecture of privilege,' Ndhlela said. The EFF called for practical solutions to stimulate economic activity and ensure mass job creation. The party's Sinawo Thambo also hit out at the GNU saying they have failed to put in place any practical and believable plan to create jobs and address the crisis of unemployment in South Africa. The African Transformation Movement (ATM) has highlighted the racial disparities in unemployment, with black Africans bearing the heaviest burden. 'The catastrophic mismanagement of South Africa's economy, underscored by an alarming rise in unemployment that has reached an unprecedented 32.9%, reflects the utter failure of the ANC-DA coalition government to fulfil its obligations to the citizens of South Africa,' the party said. The ATM has suggested empowering small and medium enterprises (SMEs) through accessible funding and resources, leveraging mineral resources to stimulate job creation, and implementing policies that prioritise employment for South Africans. Even parties within the GNU weighed in on the matter. The GOOD Party secretary general, Brett Herron, said South Africa was not just facing an unemployment crisis but a crisis of dignity. 'The latest QLFS confirms what South Africans already feel in their homes and communities - unemployment is getting worse, not better… Every lost job means another family pushed into poverty. Every discouraged worker is a symbol of a broken economic system,' Herron said. The DA has also emphasised the need for economic growth and job creation. 'Economic growth and job creation are the paramount priority of the government, and the DA's reform proposals and bold agenda should be front and centre to reverse this situation,' said Michael Bagraim, DA spokesperson on Employment and Labour. Cape Argus