The Department of Employment and Labour in South Africa has voiced its deep concerns regarding recent job cuts at several prominent companies, highlighting the urgency of addressing the country’s socio-economic predicaments.
This wave of retrenchments has struck firms like ArcelorMittal South Africa and tyre manufacturer Goodyear, both citing a need for global restructuring as a reason for their drastic workforce reductions. Adding to the increasing anxiety, the Ford Motor Company of Southern Africa has disclosed plans to cut approximately 474 jobs, predominantly affecting operators and administrative personnel across its facilities in Pretoria and Gqeberha.
In response to these alarming trends, Labour Minister Nomakhosazana Meth reiterated the government’s unwavering commitment to mitigate unemployment. “As Employment and Labour, we are committed to our mandate of promoting employability, job creation, and upskilling, which ultimately contribute towards economic development,” she declared. Meth underscored the significance of successful initiatives, such as the Presidential Youth Employment Initiative, which has seen an investment of over R4 billion to support various programmes, including the Education Assistants’ programme, having already employed more than 140,000 young people nationwide.
The Minister further indicated that the Department’s strategy involves a close collaboration with the Economic Cluster to better address the pervasive issue of unemployment, which has recently emerged as a critical challenge in South Africa.
Statistics South Africa has reported an alarming rise in the country’s unemployment rate, which soared to 33.2% in the second quarter. Vulnerable groups, particularly black African women and youth, have been disproportionately affected by these unsettling figures, exacerbating the urgency for strategic intervention.
