The Congress of South African Trade Unions (COSATU) demands urgent and decisive action to tackle the unemployment crisis. The latest jobs report released by Statistics South Africa for the 1st Quarter of 2026, is beyond depressing. Whilst there is usually a slight downward trend after the festive season peak in the last quarter of the year, the job losses for the first three months of 2026 are extremely worrying.
The expanded definition of unemployment has risen by 1.6% to 43.7% with the total number of unemployed persons rising by 301 000. The construction as well as community and social services sectors have been particularly hard hit, notwithstanding some positive jobs increases in manufacturing, mining and agriculture. Whilst the overall increase in unemployment was largely driven by school leavers and matriculants entering the labour market after the end of the school year, we must all be deeply concerned by the state of the economy and its inability to absorb the youth.
The outlook for the 2nd Quarter is likely to be similarly bleak due to the unprovoked war in the Middle East and the massive impact it has had on international oil and fuel prices, essentially doubling over the last two months. This has already seen economic growth projections for South Africa for 2026 slashed from an already meagre 1.4% to 1%. Inflation for transport has already jumped with food and other essential goods likely to soon follow suit. This may see the Reserve Bank hike the repo rate, inflicting even further pain upon highly indebted workers and an embattled economy.
We cannot continue to normalise 1% economic growth and dangerously high levels of unemployment, poverty and inequality. The extent of this crisis requires a bold and aggressive stimulus package to kickstart the economy, rebuild public and municipal services, make capital affordable and accessible for SMMEs and industrial sectors, and extend relief for the unemployed by expanding public employment programmes.
Similarly, efforts to reduce the price of electricity, restore rail and ports to full capacity, and invest in economic infrastructure and tackle crime and corruption must be accelerated.
COSATU will be tabling formal proposals on a stimulus package mobilising every possible public and private financial resource to Nedlac and Parliament. Unemployment is the single greatest threat to the nation. It requires the same decisive and progressive response as was mobilised and led by President Cyril Ramaphosa during COVID-19. This is a ticking time bomb we dare not ignore.
Issued by COSATU
Matthew Parks (COSATU Parliamentary Coordinator)
Mobile: 082 785 0687
Email: matthew@cosatu.org.za
Source: https://mediadon.co.za/cosatu-demands-urgent-and-decisive-action-to-tackle-the-unemployment-crisis/