Nelson Mandela Bay Business Chamber chief executive officer Denise van Huyssteen has raised concerns about SA’s declining labour market after the latest quarterly employment statistics showed the country lost 80,000 jobs between March and June.
The Stats SA report, released on Tuesday, indicated that substantial job losses were recorded in six sectors — community services (53,000), trade (10,000), manufacturing (9,000), construction (7,000), transport (2,000) and business services (2,000).
According to the report, two sectors showed marginal improvements, with increases in employment being registered by mining (0.4%) and electricity (1.6%).
Several manufacturers in Nelson Mandela Bay have either closed down or started retrenchments.
Goodyear SA closed in August, while Aspen and Ford Motor Company SA have begun retrenchment processes.
The Bay hosts SA Auto Week 2025 this week.
Van Huyssteen said the job losses were a clear signal that the country faced major headwinds.
“The year-on-year contraction of jobs is particularly concerning and highlights long-standing structural issues and general lack of competitiveness of SA versus other countries, which are much more efficient.
“The chamber is not surprised by these figures, especially considering the immense pressure facing the 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.”
Van Huyssteen said SA needed to urgently develop and implement a cohesive, competitive strategy that repositioned the economy for recovery and addressed 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,” she said.
“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.”
The Herald
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