By Mthobeli Jiwulane:
Reading the numbers, some expected it while others saw nothing from it, but one thing is for sure: something is happening in South Africa’s economy that has brought optimism about its future.
Thus, all thanks to numerous efforts, mainly state interventions, that have been put in place in the last few years to turn things around on the economic front, amidst a frenzy of criticisms from various quarters. It has been coming, but slowly and last year’s GDP uptick was a telling sign.
A period of gloom and high political malaise
President Cyril Ramaphosa’ much criticised plans and strategies are beginning to make an impact. It’s deserved results after South Africa was confronted by a long period of continuous economic downward spiral propelled by the impact of the recent Covid-19 pandemic, rolling loadings and general economic challenges worldwide.
Now even labour is smiling while gazing at the horizon with optimism, though cautiously.
Smiles and a cautious welcome from COSATU House
The Congress of South African Trade Unions (COSATU), which often differs with the government on the economic performance and how that impacts the working class, welcomed what it regards as the “positive drop” in unemployment as announced by Stats SA.
According to Stats SA’s latest report, unemployment has dropped by 0.5% to 31.4% for Quarter 4 of 2025. It also reported that the expanded unemployment has decreased by 1.3% to 41.1%.
SA is long overdue for some good news
The body further recorded an increase in employment by a net 44 000 jobs, resulting in the total number of working South Africans to over 17.1 million, a move that COSATU welcomed as “hopeful news”.
“It is critical that this momentum is maintained and accelerated for Quarter 1 of the new year, where there is normally a decrease in employment as the festive season jobs bump comes to an end in jobs. South Africa is long overdue for some good news,” said COSATU’s Matthew Parks in a statement issued by the country’s largest labour federation.
“Whilst welcoming nearly a 1.3% decrease in unemployment over the past quarter, we dare not be complacent. A 41.1% unemployment rate remains a dangerous ticking time bomb that cannot be sustained.
Capacity needed at the coalface of delivery
“Much more needs to be done by the African National Congress led government, in particular to further capacitate the frontline public and municipal services that the working class and businesses depend upon, to inject additional stimulus needed to unlock economic growth including expediting the infrastructure investment programme, and to ramp up public employment programmes and relief for the poor and the unemployed,” Parks said.
It said particular support must be provided by the state to struggling businesses and sectors due to the 30% tariff duty imposed on South African exports to the United States, increasingly unaffordable electricity and other economic challenges. Such support must come in the form of tax relief, industrial subsidies and fixing the mind-numbing delays at the Unemployment Insurance Fund’s Temporary Employment Relief Scheme.
A call to inject more financial stimulus
“It is critical that the 2026/27 Budget and Medium-Term Expenditure Framework, due to be tabled at Parliament on 25 February respond to these challenges and provides a bold stimulus package to take the economy to the 3% growth rate needed to slash unemployment.
“The private sector must be compelled to end the investment strike and invest in government bonds, critical economic infrastructure and the industrial, manufacturing and agricultural jobs-rich economic sectors,” Parks said.
Unemployment is the single greatest threat to the nation – COSATU
Tackling it must be our collective focus, and every possible resource and intervention must be mobilised to defeat it. “South Africans do not expect overnight miracles, but we need to see consistent progress, in particular, a 1% decrease in unemployment each quarter.
“This will provide the momentum the economy needs and give hope to the working class and society,” Parks said. – @NewSA_Online
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