South Africa is facing an increasing jobs crisis as mining and manufacturing giants announce sweeping retrenchments. Minister of Labour and Employment Nomakhosazana Meth has voiced “grave concern” over the escalating losses, emphasising that her department is intensifying efforts to safeguard livelihoods and catalyse economic recovery.
In the mining industry, Glencore is undergoing consultations that may lead to operational reductions and potential retrenchments across several of its South African mining facilities.
The company is considering scaling down operations at its Rustenburg ferrochrome smelters, which include the Boshoek, Wonderkop, and Lion facilities. Additionally, retrenchments are being considered at the Rhovan vanadium plant and associated support functions located in Lydenburg and Emalahleni.
These proposed actions have raised significant concerns from the Solidarity union, which estimates that up to 2,425 direct jobs and more than 17,000 indirect jobs could be jeopardised, affecting an estimated 155,000 individuals who are dependents of these employees.
ArcelorMittal South Africa (AMSA) is proceeding with the closure of its long steel operations in Newcastle and Vereeniging by the end of September. This action places 3,500 direct jobs at risk, with potential downstream job losses affecting up to 100,000 jobs.
Union reports indicate that these cuts may extend beyond 4,000 roles, potentially impacting the Vanderbijlpark flat steel plant. The decision is attributed to ongoing issues including weak domestic demand, high electricity costs, logistical challenges, and competition from Chinese imports, compounded by a half-year loss of R1 billion.
In the manufacturing domain, Ford South Africa confirmed the retrenchment of 474 staff—including 391 operators at Silverton (Pretoria), 73 at Struandale (Gqeberha), and 10 administrative positions across both plants. Meanwhile, Goodyear SA closed its Kariega tyre plant amid global restructuring, resulting in 900 job losses. Notably, the department was not notified by Goodyear, rendering it unable to intervene.
Minister Meth condemned the scale of the job losses, remarking, “These are not just numbers, but people with families and children to support and put through school.” Her department remains committed to support but noted that some interventions—like the R416 million UIF TERS allocation for AMSA—collapsed when companies could not guarantee no retrenchments during turnaround efforts.
New data released by Statistics South Africa reveals a severe downturn in the nation’s employment figures for Q1 2025. The economy experienced a net loss of 291,000 jobs across various sectors, with mining losing about 35,000 jobs.
The official unemployment rate rose to 32.9%. The situation is particularly acute for young people, with youth unemployment surpassing 46%. Furthermore, when discouraged jobseekers are included, the expanded unemployment rate approaches 43%, indicating an employment crisis of significant magnitude.
Meth attributes the retrenchments to a combination of global and domestic pressures, including trade wars, rising tariffs, declining manufacturing, and failing infrastructure. She affirmed that addressing the crisis demands an intergovernmental, multi-sector response.
Meth reiterated her department’s commitment to job preservation through upskilling, youth employment initiatives, and employer relief mechanisms. Despite the challenges, she maintains that strategic collaboration between government, industry, and labour is essential to prevent further erosion of South Africa’s workforce.
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