Honourable Chairperson and Honourable Members;
Deputy Ministers of Employment and Labour, DM Judith Nemadzinga-Tshabalala and DM Jomo Sibiya;
Acting Director-General, Ms. Jacky Molisane;
Deputy Directors-General of our Department;
Chairpersons and CEOs of our Entities;
Our National and International social partners;
My guests watching from the viewing venue;
Fellow South Africans,
We table this Budget Vote of the department of Employment and Labour, at a moment of both difficulty and determination for our country.
The latest Statistics South Africa (STATS SA) report reminds us of a reality that South Africa's economic recovery is not translating into jobs. While there are signs of stabilisation in the economy including improvements in electricity supply, moderating inflation, renewed infrastructure investment and growing investor confidence - millions of South Africans still wake up every morning without work, without income, and without certainty about tomorrow.
The survey highlights the continued fragility of South Africa's labour market recovery. After declining from 33.2% in the third quarter of 2025 to 31.4% in the fourth quarter, the official unemployment rate rose again by 1.3 percentage points to 32.7% in the first quarter of 2026, leaving more than 8 million South Africans unemployed. The crisis confronting young people between the ages of 15 and 34, is that unemployment remains critically high at nearly 46%, underscoring the urgent need for accelerated economic growth, targeted labour market interventions and large-scale youth employment opportunities.
Honourable Chairperson,
In 1976, the youth of South Africa rose against exclusion and the denial of opportunity. As we honour their sacrifice, we have declared 2026 as “The Year of Putting Young South Africans to Work, in Honour of the 1976 Youth and Commemoration of the Youth Uprising Golden Jubilee." This is a national commitment to place youth employment, skills, workplace experience and economic participation at the centre of government, business and society.
To deepen these interventions, R350 million (three hundred and fifty million rand) has been committed to the Government and Business partnership, working with the Presidency and the National Pathway Management Network to place 130 000 (one hundred and thirty thousand) young people, into learning opportunities, work exposure programmes and employment interventions. In addition, R95 million (ninety-five million rand) has been committed to the IDC to support Youth Employment Innovation Projects aimed at placing 7 000 (seven thousand) young people into productive economic activity.
Through the Labour Activation Programme, we are repositioning and repurposing our interventions to respond more effectively to South Africa's deepening unemployment crisis and to connect unemployed South Africans to real economic opportunities. The review of the Labour Activation Programme strategy, is now centred on three focused pillars aimed at improving labour market absorption, strengthening workplace experience and supporting enterprise-led job creation.
The first pillar focuses on demand-led skills development aligned to the needs of the labour market. Working in partnership with business, public entities and training institutions, we are ensuring that training programmes are directed towards scarce and critical skills that are required by the economy and that improve the prospects of employment absorption.
The second pillar prioritises the placement of graduates, TVET students and learners from higher education and training institutions into internships and work-integrated learning opportunities so that they can complete their qualifications and gain the workplace exposure necessary to enter the labour market.
This will include the placement of 20 000 (twenty thousand) TVET students on work integrated learning (WIL), Chartered Financial Analysts (CFAs), Chartered Accountants, Professional Technicians and Engineers, Law Students and Health Inspectors. In addition, we will train 10 000 (ten thousand) youth on digital skills and 10 000 (ten thousand) for Driver's License.
Through partnerships with employers and training institutions, we are strengthening pathways from learning into work.
The third pillar focuses on intervention support for Micro, Small and Medium Enterprises (MSMEs) through blended finance mechanisms aimed at stimulating economic activity, supporting business growth and expanding job creation. Through these targeted interventions, the Labour Activation Programme is being reshaped into a more responsive instrument for employment creation, economic inclusion and sustainable livelihoods.
Through targeted labour market interventions, government will recruit 200 000 (two hundred thousand) unemployed people in the current financial year alone, contributing to a total of 605 000 (six hundred and five thousand) beneficiaries over the Medium-Term Expenditure Framework period. Importantly, 70% of all opportunities will be directed towards the youth, reflecting a deliberate commitment to address the plight of unemployed young people.
For the 2026/27 financial year, the Department of Employment and Labour has been allocated R4.578 billion (four billion, five hundred and seventy-eight million rand), representing a 10.2% (ten-point two percent) increase from the previous financial year. Of this amount, there is DEL contribution to more than one billion one hundred million rand (R1.17 billion) to critical ICT infrastructure.
R36.6 billion (Thirty-six billion six hundred million rand) OVER THE MTEF has been set aside for the Labour Activation Programme for 2026/27. We call on all employers to partner with us and open opportunities to place young South Africans to either complete their studies or for first time work experience, through internships.
Honourable members,
As part of rebuilding the enforcement capacity, we launched the phased implementation of Project 20 000 inspector interns, a historic expansion of the labour inspectorate aimed at strengthening the frontline presence of the DEL across the country.
The first phase of 10 000 (ten thousand) inspector interns commenced during the 2025/26 financial year, and by the end of April 2026, approximately 3 800 (three thousand, eight hundred) young interns had already entered training and deployment processes. A further 3 500 (three thousand, five hundred) will start end of May, while 2 700 (two thousand, seven hundred) start by end June 2026. These young recruits are the new boots on the ground in the fight against labour exploitation, non-compliance and workplace injustice.
Project 20 000 gained further momentum following the announcement of the appointment of 10 000 (ten thousand) permanent labour inspectors by President Cyril Ramaphosa in the 2026 State of the Nation Address. The Department will start with the recruitment of these permanent inspectors, instead of recruiting the remaining 10 000 interns. We have set aside 5 billion rand (Five Billion Rand) for the MTEF period
We plan to modernise labour inspection systems through hybrid inspections that leverage digitisation and smart technology to improve and strengthen compliance monitoring across workplaces.
Public Employment Services is a frontline instrument in the fight against unemployment where millions of work seekers face exclusion not only because of the shortage of jobs, but because of distance, cost, information barriers and fragmented systems, access itself becomes a matter of justice.
That is why we are strengthening Employment Services South Africa (ESSA), expanding online and labour-centre based services, and harmonising systems with the National Pathway Management Network to ensure that unemployed South Africans are connected to jobs, training, counselling and support with greater speed, reach and fairness. Employers are now able to access the system directly and match with unemployed work seekers, whether they require chefs, waiters, drivers, plumbers, artisans, etc. ESSA can be accessed via www.labour.gov.za and click on ESSA under online services tab. Through ESSA, the Department has built the largest government work-seeker database in the country.
As part of advancing more coherent and impactful Public Employment Programmes, I have approved the progression of the Public Employment Programmes Review Report to the DG Clusters and Cabinet processes. The report is informed by the need to strengthen coordination, planning and implementation of approximately 106 Public Employment Programmes introduced since 1994. Upon completion of the approval processes, the report will be released for public comment as part of advancing a more coherent and impactful Public Employment Programmes Framework.
R350 million (three hundred and fifty million rand) has been committed to the Government and Business partnership, working with the Presidency and the National Pathway Management Network to place 130 000 (one hundred and thirty thousand) young people, into learning opportunities, work exposure programmes and employment interventions. In addition, R95 million (ninety-five million rand) has been committed to the IDC to support Youth Employment Innovation Projects aimed at placing 7 000 (seven thousand) young people into productive economic activity.
One of the interventions supported through this programme has been the Teacher Assistants Programme. During the 2025/26 financial year, over 158 000 (one hundred and fifty-eight thousand) opportunities were created. We funded this programme with R4 billion (four billion Rand) as part of LAP.
Honourable Members,
Through the Nedlac process, the Labour Laws Amendment Bill propose critical reforms to the Labour Relations Act, Basic Conditions of Employment Act, National Minimum Wage Act and Employment Equity Act. These changes are aimed at strengthening worker protection, improving dispute resolution, reducing unnecessary compliance burdens for small businesses and aligning legislation with Constitutional Court and Labour Court judgments.
Progress is already measurable. The Labour Laws Amendment Bill was approved by Cabinet for public comment and published in the Government Gazette on 27 February 2026, generating 216 public submissions currently under review. In parallel, the UIF and Compensation for Occupational Injuries and Diseases Amendment Bills have successfully passed the Socio-Economic Impact Assessment System (SEIAS) process. The UIF Bill has also received certification from the Chief State Law Advisor, with both reform processes continuing through cluster and Cabinet approval stages.
Since its introduction, the National Minimum Wage has benefited an estimated six million workers.
Following the promulgation of the Employment Equity Amendment Act and the introduction of sectoral numerical targets. On 1 January 2025, more than 14 000 (fourteen thousand) designated employers submitted Employment Equity reports, while over 11 000 (eleven thousand) non-designated employers applied for Compliance Certificates.
In the 2025/26 financial year, the Department targeted 3 324 (three thousand, three hundred and twenty-four) Employment Equity inspections, including Director-General Reviews, re-assessments, and monitoring interventions. A total of 1 948 (one thousand, nine hundred and forty-eight) employers were reviewed and served with recommendations. Of these, only 181 employers were found compliant, representing a compliance rate of 9 percent, while 1 767 (one thousand, seven hundred and sixty-seven) employers were found to be non-compliant and were issued with recommendations for corrective action.
For the 2026/27 financial year, the Unemployment Insurance Fund (UIF) budget is R41 billion (Forty-one billion rand).
During the 2025/26 financial year, the UIF through TERS had supported 30 companies with approximately R295 million (two hundred and ninety-five million rands), saving more than 9 300 (nine thousand three hundred) jobs during a period of economic pressure. This intervention demonstrates the Fund's critical role in sustaining businesses, protecting workers and strengthening economic resilience. The performance of TERS has been below satisfactory. We will strengthen operational efficiency, improve turnaround times and enhance capacity to support companies in distress and preserve jobs. Ther TERS allocation for 2026/27 is R2.4 billion (two billion and four hundred million rand).
The Labour Activation Programme is allocated a budget of R36.6 Billion over the MTEF.
Honourable Members, the 2026/27 budget of the Compensation Fund is R28 Billion, directed at strengthening social protection for workers while building a more capable, ethical and sustainable institution.
The Fund also continues to invest in the future of our youth through a R300 million (three hundred million rand) bursary programme that currently supports about 4 000 (four thousand) students in scarce skills qualifications across South African universities
Honourable Chair,
Supported Employment Enterprises is the only state manufacturing entity whose core mandate is the large-scale employment of persons with disabilities. I therefore want to challenge Ministers, Premiers, MECs, Mayors and all leaders across government to actively approach the National Treasury to seek for an exemption that will enable them to procure from Supported Employment Enterprises. Whether it is office furniture, school furniture, hospital linen, bedding, protective clothing or institutional textiles, government must use its own procurement muscle to support enterprises that employ persons with disabilities. Public procurement must become an instrument of social transformation, not merely a compliance exercise.
The work of the National Economic Development and Labour Council (Nedlac) continues to demonstrate the strategic importance of social compacting in a democracy such as ours. Nedlac during 2025/2026 facilitated extensive engagements on labour law reforms, resulting in the finalisation of amendments to key labour legislation, including the Labour Relations Act, Basic Conditions of Employment Act, National Minimum Wage Act and Employment Equity Act, which are now before Parliament. These reforms are expected to strengthen labour market protections, advance workplace transformation, improve fairness in employment practices and enhance labour market resilience.
Productivity SA is being repositioned as a strategic delivery arm for productivity-driven growth, enterprise sustainability and job retention, particularly for SMMEs and vulnerable enterprises. The institution continues to build on positive momentum from the previous financial year, where targets related to enterprise support, skills development and job retention were exceeded.
In the current financial year, Productivity SA aims to support more than 1 300 enterprises, capacitate 2 500 workers and managers, develop 350 productivity champions and save approximately 4 000 jobs through turnaround interventions.
The Commission for Conciliation, Mediation and Arbitration (CCMA) is increasingly becoming a proactive institution focused on conflict prevention, strengthening collective bargaining, and contributing to job retention.
In the current year, it targets the resolution of 99% of cases within prescribed timeframes and seeks to address 90% of public interest disputes while supporting the preservation of jobs during retrenchment processes.
IN CONCLUSION
Honourable Members, in a constrained fiscal environment, this budget reflects a deliberate choice to direct resources where they can make the greatest impact in jobs, protection, enforcement, and reform, while building a more capable, ethical, and developmental state, which is our third priority in the country's Medium-Term Development Plan (2024–2029).
I therefore present to this House the Budget Vote 31 (thirty-one) as a statement of national purpose to build a labour market, and an economy, that works for all our people.
I appreciate support of the Deputy Minister's, the Portfolio Committee on Employment and Labour, my Special Advisors, DG and the entire DEL family executives, and the entire team in my office, who spent sleepless nights contributing towards finalisation of this budget vote speech.
I thank you!
© 2019 - The South African Department of Employment & Labour
