South Africa’s unemployment rate has climbed to 33.2%, with warnings that the crisis could deepen further following the United States’ decision to impose a 30% tariff on key South African exports - a move expected to hit vulnerable industries and young workers the hardest.
Statistics South Africa’s latest Quarterly Labour Force Survey has shown that joblessness increased in the second quarter of 2025, with the youth unemployment rate remaining alarmingly high at 46.1%.
Labour federations reveal to Saturday Star that young workers will bear the brunt of the impact, as industries providing entry-level positions are set to suffer.
The Federation of Unions of South Africa (FEDUSA) has is among those that have voiced serious concerns over this growing unemployment crisis, highlighting its detrimental impact on the nation’s economy and the domestic workforce.
According to FEDUSA, sectors such as manufacturing, automotive, agriculture, and textiles, which are already on fragile ground, will be disproportionately affected by these tariffs.
It is revealed that young workers, in particular, face heightened job insecurity, as these industries are often the primary source of entry-level positions.
“The tariff is making it more difficult for the country to create job opportunities and retain them.”
FEDUSA said, noting that members in the Motor Industry Staff Association, National Union of Leather and Allied Workers, and United Association of South Africa are among the most vulnerable.
“In the affected sectors we have previously raised concerns regarding the impact the increased tariff will have in those sectors. We highlighted that sectors such as manufacturing, automotive, agriculture, and textiles are particularly exposed. Youth workers in these industries face heightened job insecurity. The increase of the tariff will have a negative impact on the unemployment rate of the country as a whole.”
“Outside our membership, we believe that many young workers are anxious and frustrated, as the future is uncertain about their employment.”
The federation called for urgent cooperation between business, labour, and government to mitigate the crisis.
“Policymakers must act urgently to support affected sectors,” the federation said, warning that without decisive action, the country’s unemployment crisis will deepen further.
The FW de Klerk Foundation had also cautioned that the situation was “a major setback” for the economy, warning that the new tariffs could wipe out an estimated 30,000 jobs in sectors such as agriculture, automotive manufacturing, and textiles.
“For many young South Africans that right is hindered by a lack of opportunities in the formal job market. The impact of these tariffs could exacerbate the already precarious situation for youth employment, particularly as industries that provide entry-level jobs are set to suffer. The ripple effect of job losses will further stretch the fragile social safety net and increase the economic challenges facing young people.”
“The FW de Klerk Foundation advocates for a future-focused approach where young people are equipped with the skills and opportunities needed to thrive in an evolving global economy. To this end, the government must expedite efforts to develop new trade partnerships, especially within Africa through the African Continental Free Trade Area (“AfCFTA”), as well as with emerging markets in Asia and the Middle East. In these regions, South Africa's agricultural exports, such as citrus and wine, as well as the automotive sector, could find new demand, offering significant growth potential.”
Economist Dawie Roodt, founder of the Efficient Group, said the tariffs will erode South Africa’s competitiveness and may effectively end benefits under the African Growth and Opportunity Act (AGOA), which previously allowed more than 1,800 South African goods to enter the US duty-free.
“We can now accept that AGOA (African Growth and Opportunity Act) is dead. Under AGOA, more than 1 800 South African products and goods, including vehicles, components and parts, were exported to the US duty-free. The population has seen a steady increase year-on-year, with a growth rate of 1.33%. We live in a country where our population growth exceeds our economic growth. This makes job creation highly unlikely.”
“Small retailers have already stopped manufacturing because it will not be feasible to continue with the new export tariffs,” said Roodt.
The Public Servants Association (PSA), representing 250,000 public-sector workers, highlighted that gains in construction, mining, and private households were overshadowed by losses in finance, agriculture, community services, and transport.
“Whilst employment gains were recorded in sectors such as construction, mining, and private households, these were overshadowed by significant job losses in finance, agriculture, community and social services, and transport. The PSA is particularly alarmed by the decline in employment in the financial services sector, traditionally a key driver of economic growth and job creation.”
anita.nkonki@inl.co.za
Saturday Star
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