South Africa Set to Raise Global Unemployment Rate

Econ Desk

June 18, 2026

3 min read

South Africa will soon chair one of the world’s most important labour bodies and has promised to “lead and demonstrate … the South African way” when it comes to job creation.
South Africa Set to Raise Global Unemployment Rate
Image by Apollo22 from Pixabay

Despite having one of the world’s worst unemployment rates, South Africa has succeeded in securing the election of Minister for Employment and Labour Nomakhosazana Meth as the vice-chair of the government group of the International Labour Organisation (ILO). This was the outcome of a recent meeting of the ILO in Geneva.

This government group operates as an executive for the ILO. In this capacity, it determines policy and drives the agenda of the organisation.

Meth’s candidacy was supported by all 187 participating jurisdictions, which the South African labour ministry termed a “strong show of international confidence”.

The ministry added that the position “carries significant influence over global labour standards and the social justice policies affecting millions of workers worldwide”.

In comments to the media, Meth’s spokesperson, Thobeka Magcai, said that the appointment carried important implications: “For South Africa, this means the country is now a chief architect of the ILO’s survival and evolution. Our influence over the reform agenda, the director-general selection, and the reshaping of governing structures directly positions South Africa to protect multilateralism, social justice and the interests of the Global South.”

In a separate statement, Magcai extolled the role South Africa was playing as having “stepped onto the global stage not merely as a participant, but as a force of transformation”.

Minister Meth said at the ILO meeting: “South Africa's participation … is not about presence, it is about purpose. When we lead, we demonstrate that social dialogue works. That is the South African way. That is the ILO's DNA. And that is why our voice matters.”

However, South African labour policy has been designed to be intrusive and prescriptive, with “social dialogue” undertaken by large, organised interests (big business, big labour unions, big government, and an ill-specified “community”). Small enterprises and the unemployed are excluded entirely.

The consequences have been dire for those not in the “social dialogue” forum. The introduction of a national minimum wage has been determined by the Development Policy Research Unit at the University of Cape Town to have cost hundreds of thousands of low-wage jobs since its introduction in 2019. This is barely acknowledged by the labour ministry.

Last year, the minister gazetted regulations in terms of the Employment Equity Act to demand rapid attainment of demographic “representivity”, failing which designated firms could be bankrupted by fines.

South Africa’s official unemployment rate is 32.7%; by the “expanded” definition – those who are not actively seeking work – the rate is 43.7%. This makes it a global outlier. World Bank data put the global rate at 4.8% and the rate for sub-Saharan Africa at 5.7%. It is also outperformed by a considerable margin by other emerging markets: Thailand’s unemployment rate is 0.8%, Vietnam’s is 1.5%, and Malaysia’s is 3.8%. Even societies suffering conflict, or where unemployment has led to instability – such as Egypt, Tunisia, Syria, South Sudan, and Yemen – can point to better outcomes than South Africa.

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