'It is clear that this government doesn't have a plan to improve the living conditions of citizens.'
ANC-led Buffalo City Metropolitan Municipality in the Eastern Cape created most jobs. Picture: iStock
ActionSA, a non-Government of National Unity (GNU) member, has joined a growing chorus of voices raising concern over South Africa’s latest unemployment figures, accusing the government of lacking a credible plan to tackle the country’s jobs crisis and improve the lives of South Africans.
The party also pointed to what it described as a success under its own leadership, stating that the ActionSA-led City of Tshwane, under Mayor Dr Nasiphi Moya, created 22 000 jobs during the period unemployment grew.
Statistics South Africa (Stats SA) released the Quarterly Labour Force Survey (QLFS) for the second quarter of 2026 on Tuesday, revealing that unemployment grew as thousands of jobs were lost.
Unemployment grows
According to Stats SA, the number of unemployed people increased by 345 000 to 8.5 million, while the number of employed people decreased by 16 000 to 16.7 million.
There was also an increase of 329 000 in the labour force during April to June.
“The above changes in employment and unemployment resulted in the official unemployment rate increasing by 0.9 of a percentage point from 32.7% in the first quarter of 2026 to 33.6% in the second quarter of 2026,” said Stats SA.
Government can’t solve unemployment
ActionSA leader Herman Mashaba said the latest statistics are concerning, citing that they are “another indictment of a government that continues to fail to chart a growth path for South Africans who face poverty and unemployment.”
He has accused the current government of not having a plan to solve unemployment.
“It is clear that this government doesn’t have a plan to improve the living conditions of citizens. The reality is that rising unemployment reflects a deep leadership crisis that will perpetuate abject poverty for the majority of residents seeking dignified livelihoods.
According to Stats SA, decreases in employment were recorded in Western Cape (48 000), Gauteng (22 000) and North West (15 000).
“The City of Johannesburg cannot legitimately claim to be the economic powerhouse of South Africa under these conditions,” said Mashaba.
Economy growth won’t make any change
Mashaba added, “Johannesburg needs a government that understands that jobs do not come from political slogans. The positive economic trajectory of a city is predicated on bold leadership that provides a clear plan for investment, safety and opportunity.”
Finance Minister Enoch Godongwana explained earlier in the year that the country’s economy will grow, but it will not make any meaningful changes. The country’s real gross domestic product (GDP) grew by 0.5% in the first quarter of 2026.
Real GDP increased by 1.1% in 2025, following a 0.5% increase in 2024. Generally, GDP growth increases employment levels because more companies open and produce more goods and services.
This leads to more people being hired to meet the higher demand, as people would have more money to spend. At the moment, the country’s slow economic growth is not doing this.
Jobs created in City of Tshwane
The City of Tshwane’s mayor said 22 000 more people were hired during the period in the country’s administrative capital, Pretoria.
“Between Q1 and Q2 2026, the number of employed people in Tshwane increased from approximately 1.229 million to 1.251 million. At the same time, Tshwane’s official unemployment rate declined by 2.6 percentage points, from 36.8% to 34.2%,” said Moya.
The city was the only metro in Gauteng to record growth in employment. City of Johannesburg lost 28 000 jobs, and Ekurhuleni lost 3 000 jobs.
“While Tshwane continues to face an enormous unemployment challenge, the latest figures are an encouragement,” said the mayor.
Job losses and gains per metro
The Quarterly Labour Force Survey also shows how the country’s metropolises performed.
City of Cape Town lost 19 000 jobs during the quarter. eThekwini added 30 000 jobs; Buffalo City added 7 000 jobs; Nelson Mandela Bay added 7 000 jobs, while Mangaung saw no change.
This comes just three months before the local elections.
‘Beyond depressing’
The Congress of South African Trade Unions (Cosatu) has labelled the statistics as “beyond depressing”.
The labour union noted that 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,” said Cosatu Parliamentary Coordinator, Matthew Parks.
“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, and food and other essential goods are likely to soon follow suit, with inflation reaching 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.”
Calls for investment in education, skills
Osagyefo Mazwai, Investment Strategist at Investec Wealth & Investment International, said the statistics are a reminder that the labour market remains highly vulnerable to both domestic and global headwinds.
“The economy continues to struggle to absorb new entrants into the labour market, with employment growth consistently lagging labour force growth. That is a reminder that stronger economic growth alone will not be sufficient to meaningfully reduce unemployment over the long term.
“South Africa’s long-term competitiveness will increasingly depend on the quality of its skills and talent, and the ability of young people to transition successfully from education into productive employment will become an increasingly important determinant of economic growth.
“That places renewed emphasis on sustained investment in education, skills development, and stronger links between learning and the world of work.
“Alongside continued structural reforms that encourage investment and business expansion, building a more productive, adaptable and future-ready workforce will be one of the most important levers for improving South Africa’s growth potential, enhancing competitiveness and creating more inclusive labour market outcomes over time.”
