Jobs crisis: Start with the easy wins  

The latest unemployment figures are a sobering reminder that South Africa’s jobs crisis is getting worse. Between April and June, another 140,000 South Africans joined the ranks of the unemployed, bringing the total increase so far this year to about 380,000 people. Today, one in every three active jobseekers cannot find work. 

Besides the 8.4-million South Africans who are unemployed, a further 3.4-million have given up looking for work altogether. That means almost 12-million people face not just the absence of a pay cheque, but the daily erosion of dignity, opportunity and hope. Our youth – whose future the government should be building – have been neglected and betrayed, with two in every five South Africans aged 25 to 34 now without work. 

The tragedy is that the government of national unity (GNU) seems incapable of turning this around. Consumed by infighting, coalition partners are working against each other instead of working for the people. And while they squabble, more than a year into the new government, we have yet to see a single economic reform to kickstart the growth our economy needs to create jobs. With new US tariffs looming, the next jobs report could be even worse. 

As the opposition in parliament, it is not enough for ActionSA to bemoan the GNU’s failures. We must start outlining a collective path forward – one that does not depend on grand promises or distant reforms but begins with immediate, achievable actions. In other words: start with the low-hanging fruit. Three sectors hold the most potential: agriculture, manufacturing and small business. 

Betting big on farming 

Agriculture has been one of the few sectors showing real dynamism. In the first three months of 2025, quarterly output surged nearly 16%, contributing 0.4 percentage points to GDP and singlehandedly lifting the economy away from contraction. Employment in primary agriculture rose by almost 13% year on year, adding close to 29,000 jobs. While foot-and-mouth disease and seasonal factors led to a dip in the second quarter, the annual trend remains positive. Some of the sub-sectors, such as horticulture, field crops and livestock, have all shown pockets of growth and job creation, proving that with the right support, agriculture can deliver rapid and tangible results. 

Yet in the long run, rural South Africa faces persistent challenges – unemployment, poverty and the decline of small towns – that are driving record levels of urbanisation. Job seekers leave their communities for the cities, only to find themselves in sprawling informal settlements, trapped in cycles of poverty and exclusion. Agriculture should be a powerful engine for rural job creation, but without real incentivisation or an enabling environment, farmers are forced to prioritise mechanisation and technology just to survive. While efficient, this shift often comes at the cost of jobs, which deepens rural stagnation. 

The solutions are not complicated. Maintain the dams that supply irrigation. Repair the rural roads that get produce to market. Guarantee reliable water and electricity to farming regions. Streamline port operations so exports move without costly delays. If government gets these basics right, South African farmers and workers will do the rest. 

Reviving South African industry

As a developing, middle-income country, South Africa’s manufacturing and industrial base should be driving stronger economic growth. Yet a sector that was once a source of national pride and millions of jobs is now in steep decline. The drop in auto exports to the US is just one of many warning signs of how outdated industrial policy and inadequate government support have crippled industry. 

Worse, government’s own customs regime has allowed foreign companies like Shein and Temu to undercut South African clothing manufacturers by exploiting loopholes that reduce their tax obligations. An industry report found that between 2020 and 2024, this practice – which could have been stopped had government acted sooner – cost local manufacturers R1bn in sales and 8,000 jobs. 

ActionSA believes in open and competitive markets, but competition must be fair. When government allows foreign firms to enjoy cost advantages and tax breaks denied to local producers, government itself is actively undermining South African industry. Closing these loopholes, enforcing customs rules and simplifying compliance for local manufacturers would help level the playing field. Coupled with targeted investment in skills and technology, such reforms could halt our deindustrialisation, reopen factory floors and employ a generation of workers proud to stamp “Made in South Africa” on their goods. 

Cutting SME red tape 

Small businesses are a vital part of South Africa’s economy, but they don’t receive the support they need. According to the latest Absa/SACCI small business index, more than half of all SMMEs are battling or at risk of closure. Meanwhile, the informal economy plays an increasingly important role, providing jobs and income for millions. Government attention to this sector, through Stats SA and other agencies, is a welcome step towards empowering township entrepreneurs and fostering inclusive economic growth. 

But government initiatives aimed at helping small businesses often fall short due to poorly designed or inaccessible support mechanisms. For example, the R500m Spaza Shop Support Fund has an eligibility rate of just 14%, leaving the vast majority of applicants in the cold. 

Beyond inadequate support, small businesses face the pervasive effects of the illicit economy, which erodes legitimate enterprises’ customer bases, while excessive red tape consumes time and resources. Addressing these challenges requires streamlining regulatory processes, simplifying business registration and tax compliance, and taking decisive action against the illicit economy.  

The cost of inaction  

Every month of inaction entrenches unemployment further.  

The choice we face is clear: continue with a government that excuses its failures and blames external factors, or pursue a different approach that starts by fixing what is within our control. Achievable, high-impact reforms are vital. These are the low-hanging fruit that can be picked now to put hundreds of thousands of South Africans back to work. 

Alan Beesley is an ActionSA MP.

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