The latest Quarterly Employment Statistics released by Stats SA confirm a deepening crisis in South Africa’s labour market, with a decline of 80 000 jobs in the second quarter of 2025 alone. This is a clear signal that the country is facing major headwinds. The year-on-year contraction of jobs is particularly concerning and highlights long-standing structural issues and general lack of competitiveness of South Africa versus other countries which are much more efficient.
The Nelson Mandela Bay Business Chamber is not surprised by these figures, especially considering the immense pressure facing our local manufacturing sector, a critical pillar of both our regional and national economy. Recent factory closures and reductions in production volumes have painted a clear picture that this sector is under immense pressure as a result of rising input costs
These are not just localised issues - they reflect a nationwide erosion of our industrial capacity and economic resilience.
In light of this, South Africa urgently needs to develop and implement a cohesive, competitive strategy that repositions the economy for recovery and addresses the emergency issues as well as long-term growth requirements. This must include practical interventions in infrastructure, security, skills development and industrial policy, rooted in partnership between government, business and labour.
Without decisive action, we risk a further decline in productive capacity, diminished public confidence, and the entrenchment of poverty and inequality. What is needed now is bold leadership and a shared national and local commitment to addressing the challenges.
Denise van Huyssteen is the Chief Executive Officer of the Nelson Mandela Bay Business Chamber.
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