South Africa’s worsening unemployment crisis has triggered renewed concern from COSATU, with the federation demanding “urgent and decisive action” after the latest labour figures showed hundreds of thousands more people without work.
In a statement issued on Tuesday, COSATU said the country’s expanded unemployment rate climbed to 43.7% in the first quarter of 2026, while the number of unemployed people increased by 301,000.
The federation described the latest employment data from Statistics South Africa as “beyond depressing”, warning that the economy is failing to absorb young people entering the labour market after the school year ended.
COSATU said the construction sector and community and social services were among the hardest hit during the first three months of the year, despite some reported gains in manufacturing, mining and agriculture.
The federation also cautioned that conditions could deteriorate further in the coming months due to rising global oil and fuel prices linked to the ongoing conflict in the Middle East. According to COSATU, economic growth forecasts for South Africa have already been cut from 1.4% to 1% for 2026.
COSATU said rising transport costs could soon push up food prices and other essential goods, placing additional pressure on already struggling households. The federation further warned that the South African Reserve Bank could respond with another repo rate increase, worsening financial pressure on indebted consumers.
The federation is now calling for what it described as a “bold and aggressive stimulus package” aimed at rebuilding public services, supporting small businesses, expanding public employment programmes and lowering the cost of doing business.
COSATU said it plans to table formal proposals at Nedlac and Parliament in an effort to push for faster economic intervention.
The organisation warned that unemployment remains “the single greatest threat to the nation” and compared the scale of the crisis to the economic emergency experienced during the COVID-19 pandemic.
No response from government or the Presidency had been included in the statement at the time of publication. Pondoland Times had not independently verified all claims made in the federation’s statement.
The latest figures are expected to deepen concern in provinces such as the Eastern Cape, where youth unemployment, poverty and limited economic activity continue to place pressure on households and job seekers.