The South African Federation of Trade Unions (SAFTU) notes with grave concern
the latest Quarter 1 2026 Labour Force Survey released by Statistics South Africa.
The figures expose an economy in deep structural crisis and a society being pushed
towards desperation.
In the first three months of 2026 alone:
- South Africa lost 345 000 jobs
- unemployment increased by 301 000 people
- the official unemployment rate rose from 31.4% to 32.7%
- the expanded unemployment rate rose to 43.7%
- youth unemployment climbed to approximately 45.8%
- discouraged work seekers increased to nearly 4 million people.
This means nearly one out of every two economically active South Africans is unemployed or has given up looking for work. These are not normal economic fluctuations. This is structural collapse. While small gains were recorded in manufacturing, mining and agriculture, they were overwhelmed by devastating losses elsewhere:
- Community and social services lost 206 000 jobs
- Construction lost 110 000 jobs
- Transport lost 30 000 jobs
- Private households lost 28 000 jobs.
At this pace thousands of households are being pushed deeper into poverty every
single day.
DEINDUSTRIALISATION IS DESTROYING SOUTH AFRICA
SAFTU has consistently warned that South Africa cannot sustain employment
growth while continuing down the path of deindustrialisation. Although manufacturing recorded a small quarterly increase, the broader trend remains deeply alarming. Recent Quarterly Employment Survey data showed manufacturing losing:
- 61 000 jobs in Q4 2025 alone,
- and approximately 127 000 jobs year-on-year.
Since 1994 South Africa has progressively weakened its productive industrial base.
The country increasingly exports raw materials while importing finished goods that
could and should be produced locally.
Entire industries have been weakened or destroyed: - textiles,
- steel,
- engineering,
- metal fabrication,
- agro-processing,
- and manufacturing value chains.
Industrial towns continue to collapse while the economy becomes increasingly
dependent on imports, debt, speculative finance and precarious informal activity.
THE FUEL PRICE CRISIS WILL WORSEN SUFFERING
The latest fuel price increases will intensify the crisis facing both workers and the
unemployed.
Rising fuel costs immediately push up:
- transport costs,
- food prices,
- logistics,
- paraffin,
- electricity,
- and the general cost of survival.
The poor suffer the most because every fuel increase affects taxi fares, bread prices
and access to work opportunities. The current global geopolitical instability, including wars, sanctions, militaryescalation and energy market volatility, is now directly punishing the South African working class.
SAFTU REITERATES DEMAND FOR A R1 500 BASIC INCOME GRANT
The scale of unemployment now requires urgent intervention.
SAFTU reiterates its demand for the immediate implementation of a permanent R1
500 Basic Income Grant for the unemployed and poor.The current SRD grant remains far below the poverty line and wholly inadequate for survival.
SAFTU rejects the dishonest claim that South Africa cannot afford such a grant.
The real question is political priorities.
South Africa loses hundreds of billions annually through:
- illicit financial flows,
- corruption,
- transfer pricing,
- tax avoidance,
- procurement corruption,
- illicit trade,
- and corporate tax reductions.
SAFTU has consistently proposed that the
grant can be funded through: - increasing corporate income tax,
- a progressive wealth tax on multimillionaires and billionaires,
- a financial transactions tax,
- recovering money lost through corruption and illicit financial flows,
- and ending wasteful subsidies and incentives benefiting corporations and elites.
A country with an expanded unemployment rate approaching 44% cannot continue
pretending that millions will somehow escape poverty without decisive state intervention.
A NEW ECONOMIC PATH IS URGENTLY REQUIRED
The Q1 2026 Labour Force Survey confirms that South Africa faces a deep structural
economic crisis that cannot be resolved through denial or cosmetic reforms.
SAFTU reiterates its call for:
- the abandonment of austerity,
- massive state-led industrialisation,
- rebuilding rail, energy and logistics infrastructure,
- protection of local industries,
- expansion of public employment,
- decisive action against illicit trade,
- reduction of fuel levies,
- and a developmental state capable of creating decent work.
Without a decisive change in economic direction, unemployment, poverty and
inequality will continue to deepen with severe consequences for social stability and
national cohesion.
A statement was issued on behalf of SAFTU by the General Secretary, Zwelinzima Vavi.
For media inquiries, contact the National Spokesperson at
Newton Masuku
newtonm@saftu.org.za
0661682157
Media Officer
Asive Dyani
0719019564
