In the second quarter of 2025, unemployment edged up to 33.2% in the second quarter of 2025 from 32.9% in the previous quarter, while of the 10.1 million people aged 15 to 24, 35.2% were not in employment
The National Economic Development and Labour Council (Nedlac) achieved 88% of its targets during the 2024 -25 financial year, but faced new domestic and international pressures, including the creation of jobs.
Nedlac was established as a forum where the government, labour, business and community constituencies deliberate on policies with wide-ranging implications for South Africa’s socio-economic development.
During the period under review, the council finalised discussions on seven key pieces of legislation, including the Tobacco Products and Electronic Delivery Systems Control Bill, the Gas Amendment BIll and the National Labour Migration Policy.
“[These] regulations and policies focused on enhancing energy security, job creation and regulating tobacco products and electronic delivery systems,” executive director Makhukhu Mampuru told a Nedlac summit on Friday.
“Additionally, of particular significance was the finalisation of engagements on labour law reforms, resulting in extensive amendments to the Labour Relations Act and Basic Conditions of Employment Act. These reforms aim to protect workers’ rights while easing rigidities to stimulate investment and fostering job creation, especially among small and medium enterprises.”
Delegates praised the implementation of the two-pot retirement savings system, which kicked off in September last year and has “provided vital relief to financially distressed workers while safeguarding long-term retirement savings”.
The system splits the contributions of pension and retirement fund members into a retirement pot and a savings pot that gives them access to the money in case of emergency, while ensuring that they preserve the majority of the money for their old age.
Nedlac has however faced resistance from the department of health in submitting the Tobacco Products and Electronic Delivery Systems Control Bill, while issues in the administration of the Unemployment Insurance Fund persist, said business overall convenor Kaizer Moyane.
The 2024-25 financial year was the second consecutive one for the council to get a clean audit, although internal financial pressures and barriers remain.
“Irregular expenditure, largely tied to donor budget shortfalls and legacy contractual obligations, amounted to R2.1 million and challenges related to negative operating cash flows and a net current liability position underscore the need for sustained financial vigilance,” government overall convenor Thembinkosi Mkalipi said.
Last year’s Nedlac summit was convened after the formation of the government of national unity and focused on providing input on future policy directions to advance inclusive economic growth as well as building a capable state and bolstering the country’s National Development Plan 2030.
The 2025 the summit comes ahead of South, which has the current presidency of the G20, hosting the annual heads of state summit in November amid a challenging domestic and global economic environment.
Delegates highlighted South Africa’s slow economic growth, which has hobbled the creation of much needed jobs in a country with a high unemployment rate especially among young people. They called for more robust reforms and policies to address this and manage the just transition to cleaner energy.
In the second quarter of 2025, unemployment edged up to 33.2% in the second quarter of 2025 from 32.9% in the previous quarter, while of the 10.1 million people aged 15 to 24, 35.2% were not in employment, education or training during the period. Based on the expanded definition of unemployment — which includes discouraged jobseekers — the rate was even higher at 42.9% compared with 43.1% during the first quarter of 2025.
“Compounding these domestic challenges are global winds. Modest global growth projections, alongside heightened geopolitical tensions, policy uncertainty and climate-related disruptions, threaten to deepen inequality and slow South Africa’s developmental progress,” Mkalipi said.
Against this challenging backdrop, keynote speaker, deputy president Paul Mashatile, said the country and its partners, including African Union member states and those in the Africa Continental Free Trade Area, were collaborating on solutions.
“We will take into account the necessity of maintaining a balance between economic growth, social inclusion and environmental stewardship to address the current requirements of the world and future generations through the G20 engagement groups,” he said.
“We are strengthening ties and expanding dialogue with civil society and non-governmental organisations, because we believe that collaboration across the global community is critical as we work to address our most serious issues, such as poverty, unemployment and inequality.”