The latest Quarterly Labour Force Survey (QLFS) for Q4:2024 underscores the urgency of accelerating economic reforms to drive job creation in South Africa. The official unemployment rate stands at 31.9%, reflecting a 0.2 percentage point decrease from the previous quarter. While this slight improvement is encouraging, the structural challenges in our economy persist, requiring bold action.
According to Statistics South Africa (StatsSA), the number of employed persons increased by 132,000, bringing total employment to 17.1 million. At the same time, the number of unemployed persons declined by 20,000, reducing total unemployment to 8.0 million. This resulted in a net increase of 112,000 in the labour force, up by 0.4% in Q4:2024. However, discouraged work-seekers grew by 111,000 (up 3.3%), indicating that many South Africans remain disillusioned with the labour market. The expanded unemployment rate remained alarmingly high at 41.9%.
Tomorrow, Finance Minister Enoch Godongwana will present the Government of National Unity’s (GNU) first annual Budget. This is a decisive opportunity to implement bold reforms that will position our country for sustained economic growth. The DA’s expectations for the Budget focus on two key areas: driving economic growth and stabilising national finances.
Driving Economic Growth – Reforms to Ports, Rail, Energy, and Tariffs
Port Efficiency: Announce further port concessions with clear timelines to improve efficiency and reduce costs, ensuring a globally competitive logistics sector.
Freight Rail: Open specific freight rail lines to private operators to increase capacity and lower transport costs, supporting industrial growth.
Passenger Rail: Devolve passenger rail services to capable provinces with a binding implementation timeline to improve reliability and accessibility.
Energy Market Reform: Set definitive timelines for a competitive energy market by granting private producers full access to the grid and enabling market-driven electricity pricing to stabilise supply and lower costs.
Tariff & Regulations Review: Conduct a comprehensive review of tariffs and regulations in ensuring our labour, industrial and manufacturing sectors remain globally competitive, fostering industrial expansion and job creation.
Stabilising National Finances and Debt
Spending Review: Implement a comprehensive spending review to eliminate waste while safeguarding essential public services such as education, healthcare, and security.
Expenditure Reform: Introduce meaningful expenditure reforms in the 2025 Medium-Term Budget Policy Statement and the 2026/27 Budget to ensure fiscal discipline.
Fiscal Rule Implementation: Commit to a clear process and timeline for a fiscal rule that mandates responsible budgeting, ensuring a reduction in debt-to-GDP and preventing a runaway debt spiral.
End Bailouts to Failing SOEs: Cease bailouts to struggling State-Owned Enterprises (SOEs) that have driven excessive borrowing and debt. Instead, SOEs must become self-sustaining, be privatised if they fulfil a critical function, or face closure if they do not. This will free up resources for critical investments in education, healthcare, and infrastructure.
The DA remains committed to the Government of National Unity and to delivering meaningful economic reforms that drive growth and create jobs for all South Africans. Despite economic headwinds, we will continue to champion policies that ensure a prosperous and sustainable future for our country.