The Congress of South African Trade Unions (COSATU) has raised alarm over South Africa’s worsening unemployment crisis, warning that the country is facing what it described as a “ticking time bomb” after the latest labour statistics showed a sharp increase in joblessness during the first quarter of 2026.
According to the federation, the expanded unemployment rate rose to 43.7% in the first three months of the year, while an additional 301,000 people were left without work. COSATU described the latest figures released by Statistics South Africa as “beyond depressing”, saying the economy continues to fail young people and job seekers entering the labour market.
The federation said sectors such as construction, community services and social services were among the hardest hit during the quarter. Although there were some gains reported in manufacturing, mining and agriculture, COSATU argued that these improvements were not enough to reverse the broader employment crisis affecting millions of South Africans.
COSATU further warned that global economic pressures could make conditions even worse in the coming months. The federation pointed to rising international oil and fuel prices linked to the ongoing conflict in the Middle East, saying these increases are expected to place additional strain on households already struggling with the high cost of living.
The trade union federation also noted that South Africa’s projected economic growth for 2026 has reportedly been revised downward from 1.4% to 1%. COSATU cautioned that rising transport and fuel costs could soon drive up food prices and the cost of other essential goods, worsening financial pressure on consumers.
In addition, the federation warned that the South African Reserve Bank could respond to inflationary pressures by increasing the repo rate again, a move which could place further financial strain on indebted households.
COSATU is now calling for what it describes as a “bold and aggressive stimulus package” to address the crisis. The federation wants government to invest more in rebuilding public services, supporting small businesses, expanding public employment programmes and lowering the cost of doing business in South Africa.
The organisation said it plans to present formal proposals at National Economic Development and Labour Council (Nedlac) and Parliament in an effort to push for urgent economic intervention.
COSATU compared the current unemployment crisis to the economic emergency experienced during the COVID-19 pandemic, warning that unemployment remains “the single greatest threat to the nation”.
At the time the statement was published, there had been no official response from government or the Presidency regarding COSATU’s concerns and proposals.
The latest unemployment figures are expected to deepen concern particularly in provinces such as the Eastern Cape, where youth unemployment, poverty and limited economic activity continue to affect many communities and households.
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