Cape Town – ActionSA has accused the Government of National Unity of presiding over what it describes as a catastrophic collapse of township and informal sector jobs, warning that nearly 300,000 informal workers lost employment in the fourth quarter of 2025 alone.
In a press statement, ActionSA Member of Parliament Alan Beesley said the figures reflect deep government neglect of small, medium and micro enterprises, township entrepreneurs and informal traders.
“For the year as a whole, the GNU only managed to create 20,000 jobs,” Beesley said, arguing that the marginal drop in the official unemployment rate from 31.9 percent to 31.4 percent masks a more troubling reality.
According to the statement, 233,000 South Africans became discouraged in the fourth quarter and stopped actively seeking work. ActionSA contends that this decline in labour force participation, rather than genuine economic growth, contributed to the lower headline unemployment rate.
The party argues that the informal sector, which should act as a shock absorber during periods of economic strain, is under severe pressure. It further claims that township-based enterprises are struggling under excessive licensing requirements, regulatory burdens and high electricity costs.
Citing analysis from the International Monetary Fund, ActionSA said South Africa’s regulatory environment disproportionately affects small firms, with complex permitting and compliance frameworks suppressing employment growth. The IMF estimates that closing half of the country’s regulatory gap relative to emerging-market peers could lift GDP by up to 2 percent.
Beyond the informal sector, the party also pointed to significant job losses in manufacturing, claiming that 127,000 positions were shed in 2025 across industries including steel, automotive components, food processing and textiles. It added that mining operations have been placed on care and maintenance due to cost pressures and delays in permitting.
ActionSA has called on the government to implement urgent pro-SMME reforms, cut red tape and create a more enabling environment for small businesses, particularly in townships.
The Government of National Unity had not responded to the claims at the time of publication.
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