Loading...
Wed, Oct 22, 2025

News

291,000 jobs lost: South Africa's jobs bloodbath deepens as major companies exit and retrench

South Africa's job blood bath continues unabated. 

New data, released by Statistics South Africa’s Quarterly Labour Force Survey, reveals a staggering loss of 291,000 jobs in the first quarter of 2025.

The formal sector was hit hardest: trade shed 194,000 jobs, construction lost 119,000, mining declined by 35,000, private households cut 68,000 positions, and community and social services fell by 45,000.

Some sectors defied the trend, with the informal sector adding 17,000 jobs and agriculture growing by 6,000. 

As a result, the official unemployment rate jumped one percentage point to 32.9%, leaving 8.2 million South Africans without work.

The expanded unemployment rate, which includes discouraged job seekers, climbed to 42.9%, leaving more than 8.3 million people officially unemployed and a staggering 25 million working-age South Africans currently not in any form of employment.

Youth unemployment remains particularly alarming, reaching 46.1% in 2025, with around 4.8 million young South Africans aged 15–34 out of work.

When including discouraged work-seekers, the expanded unemployment rate has climbed to 43.1%, indicating that nearly half of the working-age population is either unemployed or not actively seeking employment.

Economist Azar Jammine attributes the surge in unemployment to years of stagnant growth and persistent structural issues.

“They don’t just leave after a bad year or two,” he said, referring to the increasing exit of multinational companies. “But when there’s no light at the end of the tunnel, companies eventually decide it’s time to go.”

Jammine cited long-standing issues like government interference, excessive regulation, crime, failing municipalities, and low productivity as key barriers to business growth. He warned that mass retrenchments reduce consumer spending and shrink the tax base, placing more pressure on government finances.

“It becomes a vicious circle, a downward spiral,” he said.

The scale of job losses has been significant. Formal non-agricultural employment fell by 74,000 jobs in the first quarter of 2025, dropping from 10.65 million in December 2024 to 10.58 million in March 2025.

On a year-on-year basis, 95,000 jobs were lost between March 2024 and March 2025. The hardest-hit sectors include trade (-52,000 jobs), community services (-17,000), and mining (-4,000). Construction, electricity, and business services also recorded smaller job losses.

Major companies are scaling back or shutting down entirely. ArcelorMittal South Africa (AMSA) is preparing to close by the end of September, resulting in 3,500 direct job losses and up to 100,000 more jobs at risk in related industries.

Despite attempts by the Department of Employment and Labour and the Department of Trade, Industry and Competition to intervene, AMSA cited funding constraints and is proceeding with its wind-down.

Ford South Africa has also announced 474 job cuts at its Silverton and Gqeberha plants, while Goodyear South Africa closed its Kariega tyre plant, resulting in 900 layoffs as part of a global restructuring plan.

With job losses mounting, questions have been raised about whether companies are complying with labour laws during mass retrenchments. Kenneth Coster, a partner at law firm Webber Wentzel, believes the answer is yes.

“It is highly unlikely that the abovementioned companies would not be compliant with the letter and spirit of the retrenchment process,” said Coster.

“The risks of non-compliance are simply too great.” He explained that large-scale retrenchments are subject to strict legal requirements, including a minimum 60-day consultation period and the possibility of a CCMA-appointed facilitator to oversee the process.

Coster noted that under Section 189A of the Labour Relations Act, retrenchment is not a negotiation but a consultation process.

“Provided an employer has a fair, reasonable and objective explanation to retrench, unions and employee representatives have limited recourse,” he said. Although strikes are permitted at the end of such processes, he argued they are “mostly ineffective” in changing outcomes.

While the Department of Employment and Labour has expressed concern about the social impact of retrenchments, its legal role in such processes is minimal. “This is more a matter for employers, employees, and the courts,” Coster added.

Employment and Labour Minister Nomakhosazana Meth said she was “deeply concerned” about the impact of job losses on South African families. “These are not just numbers, but people with families and children to support and put through school,” she said.

In response, the government has introduced support measures such as the Temporary Employer/Employee Relief Scheme (TERS) through the Unemployment Insurance Fund (UIF).

Earlier this year, the Department secured R416 million in funding to assist nearly 3,000 AMSA employees. However, the deal collapsed when the company could not guarantee it would avoid retrenchments. Other companies, like the South African Post Office, have received relief. SAPO was granted R381 million to support nearly 6,000 employees as part of a turnaround plan.

The Presidential Youth Employment Initiative has also received over R4 billion, enabling the government to place more than 140,000 young people in schools as education and teacher assistants. But both Jammine and Coster have warned that such interventions are only stopgaps and cannot address the root causes of the employment crisis.

“Eventually the government will run out of money to keep funding temporary relief,” Jammine said. 

He added that deeper, structural reform is urgently needed, including improving education and skills development, addressing criminal syndicates, and creating a more enabling environment for small businesses, which remain a crucial but underdeveloped engine of job creation. 

Coster agreed, adding that South Africa’s labour laws are not the core issue. “The Labour Relations Act is not the problem. The real issue lies in the economic environment created by government policies.”

With global economic pressures compounding the country’s domestic challenges, Meth said the Department remains committed to promoting employability, upskilling and long-term job creation.

Meth warned that broader global challenges are weighing heavily on South Africa’s economic recovery. 

“The sluggish economy due to global factors such as trade wars, higher tariffs and reduced manufacturing presents huge challenges for the creation and sustainability of jobs,” she said.

“As Employment and Labour, we are committed to our mandate of promoting employability, job creation, and upskilling, which will ultimately contribute to economic development.”

*This article was published by IOL News

291,000 jobs lost: South Africa's jobs bloodbath deepens as major companies exit and retrench

Don't whitewash Joseph Kabila's legacy, Thabo Mbeki Foundation warned

The former Deputy Minister of International Relations and Cooperation, Marius Fransman, has issued a crucial warning to the Thabo Mbeki Foundation, urging it to protect itself from being misappropriated by former Democratic Republic of the Congo (DRC) President Joseph Kabila.

This caution follows the DRC's refusal to participate in a peace and security dialogue organised by the foundation, with Congolese officials accusing Mbeki of bias in favour of the M23 rebels as well as Rwanda, particularly due to his past comments concerning the ongoing conflict in eastern DRC.

Fransman said Kabila's history cannot be rewritten.

He noted that the Kabila era was characterised by one of the most harrowing humanitarian crises since World War II. He pointed to the two widely contested elections held in 2006 and 2011, which he claims robbed the Congolese populace of their democratic voice.

“Under Kabila, we witnessed 18 years of authoritarianism and political unrest that yielded atrocious human rights violations, war crimes, and mass killings,” Fransman added.

He described Kabila's regime as profoundly corrupt, invoking terms such as "systematic looting of state resources," illicit mining contracts, and collusion with rogue factions from Rwanda that exacerbated violence and deprivation within the eastern regions of Congo. 

"This is the true legacy of Kabila: a regime of bloodshed, corruption, and betrayal of the Congolese people," said Fransman.

The effort to portray Kabila as an “innocent statesman” or a “reflective elder” is, he insists, not just historical revisionism, but a “direct threat to truth and accountability.”

He added that the Thabo Mbeki Foundation, known for its respected Pan-African stance, must ensure it doesn’t unwittingly provide a stage for Kabila’s misleading narrative of peace.

Fransman highlighted the stark contrast between Kabila and current DRC President Félix Tshisekedi, who he believes represents a clear departure from the tumultuous past. 

He said Tshisekedi has embraced democracy, accountability, and reform, stabilised Congo and opening it to peace, development, and cooperation.

"The Congolese people are rebuilding, and their story should not be undermined by recycled propaganda that attempts to absolve those responsible for genocide, war crimes, and looting," Fransman said.

"I therefore urge the Thabo Mbeki Foundation and former President Mbeki himself to remain vigilant and uncompromising in the face of Kabila’s attempts at whitewashing. True African solutions must rest on truth, accountability, and justice; not to allow architects of instability to masquerade as peacemakers.

"Africa cannot afford to forget the lessons of history, nor can we allow the victims of Kabila’s reign of terror to be silenced under the banner of false reconciliation," Fransman said.

At the time of publication, attempts to obtain a response from the Thabo Mbeki Foundation's spokesperson, Anga Jamela, were unsuccessful.

This story will be updated as soon as a response is received. 

*This article was first published by IOL News

Don't whitewash Joseph Kabila's legacy, Thabo Mbeki Foundation warned

Businessman Vusimuzi ‘Cat’ Matlala claims 52 workers lost jobs after SAPS cancelled his R360 million contract

Fifty-two workers, who were employed by Medicare 24, a company owned by alleged murder accused Vusimuzi ‘Cat’ Matlala, lost their jobs after the South African Police Service (SAPS) cancelled a R360 million contract to provide health services to its members.

The revelation was made during Matlala’s formal bail application on Tuesday. 

He stands accused of orchestrating a hit on actress Tebogo Thobejane in 2023.

Matlala faces multiple charges, including attempted murder, conspiracy to commit murder, and money laundering. 

He is charged alongside four co-accused, including his wife, Tsakani Matlala, who is currently out on bail.

The charges stem from a shooting incident on the N1 highway near Sandton in 2023, during which Thobejane, best known for her role in the television series ‘ Muvhango’ - was shot in the foot. 

A female passenger in her vehicle suffered a serious spinal injury.

During Tuesday’s court proceedings, Matlala’s lawyer, Advocate Laurence Hodes SC, read his client’s bail affidavit - who argued that he should be granted bail to properly prepare for trial.

He described himself as an accomplished businessman who is self-employed and the director of four companies.

“I'm self-employed as the director of four companies, namely CAT VIP Protection Pty Ltd, Lux South Africa Investments Pty Ltd, Black AK Trading, and Medicare24 Tshwane District Pty Ltd,” he said.

Matlala said he earns R250,000 per month from his businesses.

“The first three businesses have operated in Pretoria,” he added.

He further explained his residential and business history in the city.

“I have been in Pretoria since September 2021, although their lease agreements were signed by Medicare 24 since it used to operate at this address. Medicare 24 has since moved to a new address in Pretoria since July 2024.”

Matlala said that all employees of Medicare 24, lost their jobs after SAPS cancelled its contract with the company.

“The 52 employees who were employed at Medicare 24, District Tshwane, have all lost their jobs after our contract with the SAPS was summarily cancelled,” he said.

ough a nearly R3 billion Special Investigating Unit (SIU) probe into suspicious contracts at Tembisa Hospital. 

“However, CAT Protection Security additionally employs 12 permanent employees in its office and 30 permanent guards. The office staff at CAT Protection and Security also perform, on an ad hoc basis, other duties of our other companies,” he stated in his affidavit.

Matlala said he owns a property in Midstream Ridge, Ekurhuleni, valued at approximately R6.6 million, and another in Mamelodi East, Pretoria, worth about R1.1 million.

“I have a tenant residing at the latter property in Mamelodi East,” he said.

He also listed luxury vehicles among his assets.

“I own a Mercedes-Benz SUV and six BMW sedans, which have a combined value of approximately R6 million.”

He said he lives at the Midstream Ridge property with his wife and three daughters, while also supporting six additional children.

“I support all nine of my children,” he added.

He valued the household contents, including furniture, appliances and fittings, at R3 million, adding that the home is registered under CAT Protection and Security Pty Ltd, of which he is the sole director.

Matlala also addressed his international interests, saying that he does not have any financial interests or assets in foreign countries. 

“I have registered a trading trust in Mauritius with the intention to invest in that country during January 17, 2025. My plans to invest in that country are still at a very early stage. I have not taken them any further and undertake not to pursue them until this matter has been finalised.”

He continued, ‘I do not have family, relatives or friends in any foreign countries. I also do not have any intention to relocate anywhere beyond the borders of RSA.”

“I was the only child to my mother who died in 2005. I currently live with my wife and children.”

Matlala has also been implicated in other high-profile cases, including alleged attempted hits on taxi boss Joe Sibanyoni and musician Seunkie “DJ Vetties” Mokubung. He has denied all charges.

In July, KwaZulu-Natal Police Commissioner Lieutenant-General Nhlanhla Mkhwanazi made explosive allegations, claiming Matlala was at the centre of a criminal syndicate operating within the highest levels of state power.

“Mr Matlala financially supported high-ranking politicians, funded gala dinners, and paid for travel expenses in exchange for political cover and interference in investigations,” Mkhwanazi said.

He also implicated suspended Police Minister Senzo Mchunu and his alleged informant Mogotsi Brown. 

“Matlala bankrolled Mchunu’s events and provided transport and accommodation for his entourage.”

Mchunu has denied the allegations.

Following Mkhwanazi’s press briefing, President Cyril Ramaphosa suspended Mchunu and appointed Professor Firoz Cachalia as acting Police Minister.

He also established a commission of inquiry to investigate the claims.

The State requested additional time to respond to the claims presented in Matlala’s affidavit. 

Magistrate Dyta Prinsloo granted the postponement, with the bail application scheduled to resume on September 8, 2025.

*This article was first published by IOL News

Businessman Vusimuzi ‘Cat’ Matlala claims 52 workers lost jobs after SAPS cancelled his R360 million contract

Sassa, Postbank agreement termination will affect beneficiaries: Tolashe

 

Social Development Minister Nokuzola Tolashe has warned that the termination of the agreement between the South African Social Security Agency (Sassa) and the Postbank will negatively affect grant beneficiaries.

Tolashe and Sassa management appeared before Parliament’s Portfolio Committee on Social Development yesterday.

They sought to explain the effect of the termination of the Master Service Agreement between Sassa and the South African Post Office on grant beneficiaries.

Tolashe has appealed to the South African Reserve Bank to closely monitor the migration from the Sassa gold card to the new post office’s black card.

“And we are really appealing to the Reserve Bank to put up their strategy so that we do not get involved in that. Because they have more than once indicated that it’s Sassa’s responsibility where there are financial implications. I accept that Chair … that it’s a lot of work.”

“However, I really want to emphasise that the Reserve Bank can play its game more sharply than it is. That’s my humble plea, Chair. So that in what they are saying it’s in the pipeline, it’s been tough … it’s being processed,” says Tolashe.

*This article was first published by SABC News

Sassa, Postbank agreement termination will affect beneficiaries: Tolashe

Judgment expected in alleged insurance killers’ bail application

Polokwane Magistrate’s Court in Limpopo is expected to deliver the judgment on the bail application of the former police sergeant and her two accomplices, accused of insurance-related killings.

Rachel Kutumela, her sister Anna Shokane and daughter, Florah Shokane, have been applying for bail since December last year.

They allegedly orchestrated the murders of nine people for insurance payouts amounting to R10 million.

Kutumela faces a total of 32 charges, including nine for murder, fraud and money laundering.

Her co-accused and sister, Anna Shokane, faces three murder charges.

The third accused, Florah Shokane, has been charged with murder, money laundering and fraud.

The court heard the accused transferred funds amongst each other after receiving insurance payouts.

*This article was first published by SABC News

 Judgment expected in alleged insurance killers’ bail application

Road Safety Partnership SA calls on motorists to respect country’s traffic laws

Road Safety Partnership South Africa is calling on motorists to respect the country’s traffic laws.

The organisation was commenting on the recent statistics from the City of Cape Town’s latest traffic records, showing an increase in motorists jumping red lights.

 

Between July 2024 and June 2025, the city’s Traffic Services recorded more than 2,7 million offences.

The organisation’s chairperson, Eugene Herbert, said it’s clear driver behaviour must be addressed.

“It's shocking to see that motorists take little cognisance of the possible dangers associated with this. Cars coming from the other direction, there could be pedestrian crossing, so if we can appeal to motorists, please do not treat traffic lights just as a suggestion to stop. It is a fact that you must stop, both in your interests, as well as in the interests of other motorists”.

 

He added that this kind of poor driving behaviour may also happening in other parts of the country.

“This is probably a true reflection of what is happening in the rest of the country. Certainly, in Gauteng, we noticed since the amount of load shedding that took place, traffic lights not working, and we know that the rule because of the congestion that was created, many motorists then took to just making a cursory stop and then moving through.”

*This article was first published by Eye Witness News

 

Road Safety Partnership SA calls on motorists to respect country’s traffic laws
Please fill the required field.
Journal News