KEY POINTS
- South Africa jobs crisis worsens with mass layoffs.
- Mining and steel closures threaten over 120,000 jobs.
- Youth unemployment surges past 46 percent nationwide.
South Africa is staring at a worsening employment crisis as sweeping retrenchments sweep across mining and manufacturing. Labour and Employment Minister Nomakhosazana Meth voiced “grave concern” over the escalating losses, warning that the cuts threaten to erode livelihoods at scale unless urgent action is taken.
Statistics South Africa data shows the economy shed 291,000 jobs in the first quarter of 2025 alone. The official unemployment rate rose to 32.9 percent, with youth unemployment rising above 46 percent. Including discouraged jobseekers, the expanded rate stands at nearly 43 percent signaling an employment crunch of historic proportions.
Mining crisis deepens with thousands at risk
Glencore is in consultations that may trigger retrenchments at its Rustenburg ferrochrome smelters, the Rhovan vanadium plant, and associated operations. The Solidarity union warns up to 2,425 direct roles and more than 17,000 indirect jobs could be affected, threatening the livelihoods of 155,000 dependents.
Steel industry shutdown worsens South Africa jobs crisis
ArcelorMittal South Africa will shutter its Newcastle and Vereeniging long steel units by September, endangering 3,500 direct jobs and up to 100,000 downstream positions. Weak domestic demand, rising electricity costs, rail bottlenecks, and Chinese imports forced the closures after a R1 billion half-year loss.
Auto and tyre retrenchments fuel unemployment surge
Ford South Africa cut 474 staff across Pretoria and Gqeberha, while Goodyear closed its Kariega plant, eliminating 900 roles without notifying the Labour Department. Together with mining and steel cuts, unions warn the job losses could destabilize entire communities already battling rising poverty.
