The Congress of South African Trade Unions (COSATU) demands bold and decisive action to tackle the unemployment crisis. The latest jobs report released by Statistics South Africa for the 2nd Quarter of 2026, is beyond depressing. The job losses for the 2nd Quarter of 2026 are extremely worrying.
The narrow definition of unemployment has risen by 0.9% to 33.6% with the number of unemployed persons rising by 345 000. The expanded definition of unemployment rose overall by 0.1% to 43.8% with a total decrease in the number of employed persons by 16 000. Particularly concerning losses were seen in community and social services (57 000), mining (26 000), and agriculture and manufacturing (15 000 each). Job losses in provinces included the Western Cape (48 000), Gauteng (22 000), and North West (15 000).
Positive gains were recorded in trade (70 000), construction (39 000), finance (11 000), Mpumalanga (41 000), Eastern Cape (13 000) and Free State (9 000).
The outlook for the 3rd Quarter is likely to be similarly bleak due to the unprovoked war in the Middle East and the devastating impact it has had on international oil and fuel prices. This has seen economic growth projections for South Africa for 2026 slashed from an already meagre 1.4% to 1.1%. Inflation for transport has spiked with food and other essential goods likely to soon follow suit, with inflation having reached 5% in June. This will likely cause the Reserve Bank to raise the repo rate again, 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 requesting urgent engagements at Nedlac with government and business on a stimulus package mobilising every possible public and private financial resources to spur economic growth. 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 cannot continue to blue tick.
Issued by COSATU
Matthew Parks (COSATU Parliamentary Coordinator)
Mobile: 082 785 0687
Email: matthew@cosatu.org.za