DA slams Lesufi’s ‘failed’ economic strategies as Gauteng reports job losses

The Democratic Alliance (DA) in Gauteng has criticised Premier Panyaza Lesufi’s leadership, blaming him for a spike in the province’s unemployment rate as revealed in the latest Quarterly Labour Force Survey (QLFS).

The official opposition claims the premier’s economic programmes have failed to deliver meaningful job creation or attract investors.

Unemployment rate increases

According to QLFS data for Q1 2025 released on Tuesday, Gauteng’s unemployment rate has climbed to 4.7%, up from 4.4% in the previous quarter.

This translates to 2.7 million unemployed residents, an increase of 41 000 people. The number of discouraged work seekers has also risen to 579 000.

DA Gauteng Shadow MEC for Economic Development, Mike Moriarty, on Tuesday, expressed concern over the figures.

“Premier Lesufi’s government has failed to create a conducive environment to attract investors and grow the local economy,” he said.

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‘We’re on the right track’

In response to the DA’s claims, Premier Lesufi defended his administration’s efforts, pointing to key investments and reforms underway in the province.

“Recently, the province convened an investment conference that secured R300 billion in commitments over 12 months,” Lesufi told The Citizen.

“These pledges are intended to spur economic growth, building on our 2024 economic growth of 1.3%, which outpaced the national average. Growth projections for Gauteng show continued momentum, with estimates of 1.8% for 2025 and 2% in 2026.”

Lesufi argued that the 0.3 percentage-point increase in unemployment was not unexpected and should be viewed within a broader seasonal context.

“This rise reflects cyclical first-quarter shifts, such as temporary job losses post-holidays, the entry of new graduates, and migration into the province,” he noted.

“Despite the slight increase, Gauteng still recorded a net gain of 9 000 jobs in Q1 2025.”

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Nasi Ispani under fire

Moriarty singled out Lesufi’s flagship Nasi Ispani jobs programme, calling it a “quick fix” that has not yielded long-term employment.

He argued that the province’s continued battle with crime, infrastructure failures, and basic service delivery issues is scaring off investors and worsening joblessness.

“Potential investors are being discouraged by crime, unreliable infrastructure, and access to basic services such as water and electricity,” Moriarty said.

“Why not begin by addressing these pressing issues, establishing proper policing, and tackling corruption at the core of the infrastructure crisis?

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Addressing job creation

Lesufi detailed immediate steps to combat unemployment, particularly among youth:

• Reinstatement of the Presidential Youth Initiative, creating 30 000 jobs for young people in Gauteng schools through the Assistant Teacher Programme.
• R500 million Spaza Shop Support Fund to formalise and empower township businesses.
• Relaunch of the iCrush NoLova training programme, under the Nasi Ispani initiative, in partnership with the Department of Employment and Labour, providing stipends and skills training to unemployed residents starting next month.

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