The high unemployment in South Africa is not just a statistic on a government report but a human crisis affecting millions of our fellow citizens. It represents families going hungry, young people losing hope, and a society struggling to reach its full potential. It is a matter that affects every aspect of our nation, from the stability of our economy to the social fabric that binds us together.
As the Assembly of the Unemployed (AoU), we urge the Government of National Unity to address this crisis urgently. We cannot afford to wait any longer; the stakes are too high. The time for action is now; this issue demands our immediate and unwavering attention.
Statistics South Africa’s Quarterly Labour Force Survey released last Tuesday shows more than 16 million South Africans are not economically active. The figures indicate that the number of unemployed persons in the second quarter of 2024 increased to 42,6% when compared to Q1 of 2024. The unemployment rate for young people under the age of 25 is now 60.8%, making it increasingly difficult for the youth with matric or less to be employed. This situation is not just a temporary setback; it is a deeply entrenched crisis that has persisted for years, exacerbated by various structural and economic challenges.
We note that the COVID-19 pandemic has made matters worse. Many businesses, particularly small and medium enterprises, have been forced to close, pushing more people into unemployment. The economic downturn has highlighted the vulnerability of our labour market, where job creation has not kept pace with population growth. This disparity between the number of people seeking work and the available job opportunities has led to an economic and social catastrophe.
Unemployment is not just an economic issue; it is a social one as well. High unemployment leads to increased poverty, which, in turn, exacerbates inequality. In South Africa, a country already grappling with one of the highest levels of income inequality in the world, this creates a vicious cycle. Those without jobs cannot afford basic necessities, leading to increased reliance on government social grants and charities. Hence we call for the urgent implementation of a Basic Income Grant of R1700 per month for all unemployed between the ages of 18-59, including caregivers, home-based workers and precarious workers who earn below the national minimum wage. This will bring much-needed relief to millions of South Africans who are languishing in poverty.
Given the severity of the situation, it is clear that the Government of National Unity must take decisive action. This government was formed with the purpose of uniting our nation and bringing together diverse political factions to address the most pressing issues facing our country. High unemployment is undoubtedly one of these issues, and it requires a united and coordinated response.
The government has a crucial role to play in creating an environment that fosters job creation. This can be achieved through a combination of policies aimed at stimulating economic growth, improving education and skills development, and supporting entrepreneurship. It is not enough to simply provide social grants; we must empower our citizens to become self-sufficient by creating opportunities for them to work and contribute to the economy.
Beyond the economic rationale, addressing unemployment is a moral imperative. As a nation, we cannot stand idly by while millions of our fellow citizens suffer. Unemployment robs people of their dignity, their sense of purpose, and their hope for the future. It creates a society where despair and frustration can quickly turn into anger and violence.
High unemployment is a ticking time bomb for social stability. It fuels crime, unrest, and political instability. We have already seen the devastating consequences of inequality and unemployment in the form of protests, looting, and violence. If we do not act now, these problems will only worsen, threatening the very fabric of our society.
The Government of National Unity must take urgent action to address this crisis, not just for the sake of the economy but for the sake of our nation’s future. We must create a society where every South African has the opportunity to work, to provide for their families, and to contribute to the development of our country.
The time for action is now. Let us not delay. Let us not be complacent. Let us rise to the challenge and build a South Africa where everyone has the opportunity to thrive. As AoU, we continue to call on the government to adopt potential job-creating alternatives that are available to address the unemployment crisis:
1: Invest in job-creating alternatives: Develop a low-carbon reindustrialisation programme that can create millions of jobs aimed at addressing climate change. Here, we can invest in public energy, public transport, housing, and transforming agriculture. This includes the production of socially owned renewable energy and the manufacturing of solar PV and wind infrastructure.
2: Basic Income Grant: These staggering figures are an indication that there’s an urgent need for the introduction of a decent basic income grant of at least R1700 per month, which should have been introduced long ago as a safety net for the poor who are grappling with the unemployment crisis. This will not only improve peoples’ standard of living and lift people from starvation but it can help to stimulate the local economy and improve productivity – which is where jobs are created. When more people have more money to spend, it can drive demand for goods and services and ultimately contribute to economic growth.
3: The government must become the employer of last resort: The government must employ everyone willing and able to work and pay them a living wage. There is a lot of work to be done, and people learn by doing. The expanded public works can be the basis for this, but it needs to be transformed and improved in terms of the working conditions. This means permanent employment at a living wage.
This also means expanding the public sector as we need many more teachers, health care and municipal workers. The government must do away with the current trend of outsourcing the provision of local services to tenderpreneurs as it is one of the main drivers that leads to the inability of municipalities to create jobs. We call on the government to develop and build the capacity of municipalities and stop outsourcing and tendering all essential projects. This can also help develop the skills and talent of the workforce. This can include training programs, apprenticeships, and other initiatives that help people gain new skills and experience that can be valuable in the job market.
4. Tax the rich: The government must implement a progressive net wealth tax of between 3 and 7%, Increase personal income tax rates on the rich, Stop profit shifting and wage evasion and use the surpluses of the government employees’ pensions to invest in a re-industrialisation programme. We believe that industrial sectors have the potential to create a significant number of jobs, including both skilled and unskilled positions. Re-industrialisation can help address regional inequalities, reduce migration from rural to urban areas, and promote balanced development across the country.
If the government fails to look at the alternatives, the jobs crisis will worsen which is why it is urgent for the government to take the drastic measures this crisis requires. The figures also indicate that there is an increase in time-related underemployment, and young people experience underemployment at far higher rates than older persons.
Sadly, the youth remain vulnerable in the labour market and are excluded from enjoying the fruits of our democracy. We call on the youth to unite and stand up against the current regime’s failures. We cannot continue with the rhetoric while we are sitting with a ticking time bomb.
…ENDS…
For more information contact:
Motsi Khokhoma, Assembly of the Unemployed: 073 490 7623
Siyabulela Mama, Assembly of the Unemployed: 065 970 7079
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