Programme Director
Honourable Speaker of the of the Legislature: Dr Makoma Makhurupetjie
Honourable Deputy Speaker of the of the Legislature: Hon TP Mamorobela
MEC For Treasury: Hon KE Mahoai
Deputy Chief whip: Hon GR Monama
Deputy Chairperson of Chairpersons: Hon HP Ngobeni
Members of the Provincial Legislature
Mayor of Waterberg District Municipality: Cllr J Maeko Mayor of Bela Bela Municipality: Cllr GM Seleka Secretary of the Legislature: Dr MT Maake
All Senior Government officials All Unions and workers present
Distinguished guests, ladies and gentlemen,
Good day to you all.
It is an honour to stand before this house on behalf of the Ministry of Employment and Labour as led by Minister Nomakhosazana Meth and supported by myself and Deputy Minister Nemadzinga-Tshabalala. The 2026 Workers Parliament takes place at a significant period in our history where we commemorate the 30th anniversary of the adoption of the Constitution ; the 50th golden jubilee commemoration of the 1976 youth uprising and the 70th commemoration of the anti-pass campaign.
It gives us an opportunity to honestly reflect on the journey that we have travelled as a country and workers i.e. the wins, the gains and the areas of further strengthening and focus as we move forward.
Chairperson , we remain guided by the provisions of the Freedom Charter that was adopted by the Congress of the People in Kliptown on 26 June
,1955 in so far as our work is concerned. It declared and I quote “there shall be Work and Security!". Further elucidated, it meant:
Further more, the South African Constitution (Act 108 of 1996) that we are celebrating today, guarantees the right to fair labour practices for everyone. Section 23 of the Bill of Rights protects the right to join trade unions, engage in collective bargaining, and strike. Furthermore, it prohibits slavery, servitude, and forced labour.
Today , the department has been requested to brief this sitting on the work of the department focusing on the status and plans in creation of employment, Labour relations, economic efficiency, reduction of poverty and inequality amongst vulnerable groups including the matter of foreign nationals.
Honourable members, the current reality is that South Africa's economic recovery is not translating into sufficient jobs as quickly as we want it to. This is despite clear signs of stabilisation. Millions of South Africans still wake up every morning without work, without income, and without certainty about the future.
The latest Quarterly Labour Force 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. Most alarming is the crisis confronting young people between the ages of 15 and 34, where 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,
We must also be honest about the nature of this challenge.
Over the past decade, South Africa's labour market has undergone a major structural shift characterised by weak labour absorption, rising long- term unemployment, growing informality and deepening inequality. Between 2016 and 2026, economic growth remained consistently below the level required to absorb new entrants into the labour market, while population growth and urbanisation expanded the working-age population faster than jobs were created. As a result, unemployment became increasingly structural rather than cyclical.
At the same time, the economy has shifted away from labour intensive sectors such as manufacturing, mining and construction towards more capital-intensive, technology-driven and service-oriented industries that demand higher levels of skills and digital capability.
Automation, digitalisation/platform and gig work, and changing global production systems have reduced demand for routine and low-skilled work, while barriers to entry-level employment have intensified, particularly for young people.
This has resulted in declining youth labour absorption, rising informal and precarious work, and a widening mismatch between available skills and labour market demand, confirming that South Africa's unemployment crisis is deeply structural and requires urgent economic transformation, industrial expansion and large-scale job creation interventions.
The Department of Employment and Labour remains at the centre of building a fair, inclusive and resilient labour market in South Africa. Our mandate is to regulate the labour market, protect vulnerable workers, enforce labour laws, strengthen social protection and advance economic transformation through decent work.
Public Employment Services and its digital systems are frontline instruments in the fight against unemployment. In a country 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 the Department is 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.
Honourable members , 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 the departmental website.
Through ESSA, the Department has built the largest government work- seeker database in the country, with more than seven million unemployed work seekers enrolled over the years, including over four million youth and majority of which are young women. We urge employers to use this system and help fight unemployment by prioritising South African job seekers.
During the past year, the Department registered more than 1.1 million (one million, one hundred thousand) work seekers, provided employment counselling and career guidance to over 357 000 (three hundred and fifty-seven thousand) individuals, and registered more than 268 000 (two hundred and sixty-eight thousand) work and learning opportunities through employer canvassing and advocacy campaigns. This resulted in over 116 000 (one hundred and sixteen thousand) successful job placements.
In partnership with the National Pathway Management Network (NPMN), a further 119 567 (one hundred and nineteen thousand, five hundred and sixty-seven) unemployed work seekers were connected to opportunities, bringing the combined contribution of PES and the NPMN partnership to more than 235 611 (two hundred and thirty-five thousand, six hundred and eleven) opportunities.
This is the difference that we make on daily basis.
The Department has engaged in the Public Employment Programmes Review process and a report is now available. The report is informed by extensive research that was commissioned by the Department of Employment and Labour on the impact of approximately 106 Public Employment Programmes introduced since 1994, as well as further collaboration with the International Labour Organisation (ILO). This was to strengthen coordination, planning and implementation of these programmes, in a well- thought and structed manner to ensure impact.
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 ,beyond the current work that is being undertaken.
In 1976, the youth of South Africa rose against exclusion and the denial of opportunity. As we honour their sacrifice, we must confront the defining injustice facing this generation: economic exclusion.
It is for this reason that 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.
In 2026, the Department targets to :
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.
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.
As presented by Minister Meth earlier this month , R36.6 billion (thirty six billion and six hundred million rand) has been set aside for the Labour Activation Programme for the MTEF. We call on all employers to partner with the Department of employment and Labour and open opportunities to place young South Africans to either complete their studies or for first time work experience, through internships.
One of the most visible interventions supported through the LAP programme has been the Basic Education Employment Initiative, widely known as the Teacher Assistants Programme. During the 2025/26 financial year, the programme targeted over 158 000 (one hundred and fifty-eight thousand) opportunities, while the broader partnership involving the Department of Basic Education and the IDC reached over 163 000 (one hundred and sixty-three thousand) opportunities. The Department funded this programme with R4 billion (four billion Rand) as part of LAP.
This intervention was made possible through coordinated action between the Department of Employment and Labour, the Presidency, the Department of Basic Education and the Industrial Development Corporation.
This scale of intervention demonstrates that government recognises the urgency of the unemployment crisis and refuses to allow young people to remain trapped at the margins of the economy. At the same time, the Department is modernising public employment services to improve job matching, career guidance and access to opportunities in emerging sectors such as the digital economy and green industries.
Honourable Chairperson ,
Inspection and Enforcement Services remain one of the most critical pillars of the Department of Employment and Labour.
As part of rebuilding the inspection and enforcement capacity of the democratic state, we launched the phased implementation of Project 20 000 inspector interns, a historic expansion of the labour inspectorate that is aimed at strengthening the frontline presence of the Department of Employment and Labour across the country.
This intervention responds to the urgent reality that too many workers remain vulnerable to exploitation and unsafe working conditions, while the state has not had sufficient inspectorate capacity to enforce labour laws effectively across all sectors of the economy.
The first phase of recruiting 10 000 (ten thousand) inspector assistants 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) recruits recently completed their security screening and await appointment letters before end of May, while 2 700 (two thousand, seven hundred) are undergoing security screening to be completed by June 2026. These young inspector assistants represent the new boots on the ground in the fight against labour exploitation, noncompliance 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. This is one of the most significant expansions of labour market enforcement capacity in democratic South Africa. The department will start with the recruitment of these 10 000 (ten thousand) permanent inspectors. We have set aside R5 Billion (five billion rand) for the MTEF period and will engage National Treasury regarding funding the permanent inspectors.
Inspections alone are not enough; enforcement must carry real consequences. The Department is therefore strengthening consequence management to ensure that 97% of noncompliant employers receive enforcement notices within 14 days, while 70% of cases are resolved or referred within 30 working days.
We plan to modernise labour inspection systems through hybrid inspections that leverage digitisation and smart technology to improve turnaround times, expand regulatory reach and strengthen compliance monitoring across workplaces.
As part of this modernisation agenda, the Department will benchmark internationally with G20 partners such as Russia and Qatar, we will also collaborate with Council for Scientific and Industrial Research under the custodianship of the Department of Science, Technology and Innovation to strengthen digital compliance systems and modernise enforcement capability.
We are dertemined to continue with the Multi-disciplinary High Impact Blitz Inspections because we are seeing the impact. We will also use the advocacy pillar to assist employers that come forward and express their need for support by the Deprtment. We will be launching such an intervention in July 2026 for 31 Chinese owned companies that have requested support. If you think compliance is expensive , try non- compliance.
Supported Employment Enterprises occupies a unique and strategic position within the democratic state as the only state manufacturing entity whose core mandate is the large-scale employment of persons with disabilities. In a society where persons with disabilities continue to face exclusion from economic participation, SEE remains a practical expression of inclusion, dignity, and productive empowerment.
We 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.
SEE is now transitioning from a heavily grant-dependent model towards a more productive, market-oriented and sustainable enterprise. The target to create 200 additional jobs in the current financial year represents more than employment statistics — it represents dignity, inclusion and hope for vulnerable South Africans. The entity also aims to increase sales revenue by 10% annually as part of strengthening long term sustainability and reducing dependence on state transfers.
Over and above the work that is being done by the SEE , the Department will , this financial year , transfer R24 million (twenty-four million rand) to 21 Designated Organisations over the next three years to provide a monthly wage subsidy of R1 500 (one thousand five hundred rand) to 1 150 (one thousand, one hundred and fifty) persons with disabilities.
Honourable Members,
Government is moving decisively to modernise labour legislation so that it remains responsive to constitutional obligations, economic realities and the changing world of work. This is through the implementation of the National Labour Migration Policy (NLMP) and the Employment Services Amendment Bill (ESAB), which are aimed at strengthening labour market governance, protecting labour standards, addressing exploitation and improving enforcement capability.
These changes seek to balance the protection of local employment with the need for critical skills, while ensuring that labour migration is governed in a lawful, fair and developmental manner. This includes stricter enforcement against undocumented employment practices, and the review of outdated Bilateral Labour Agreements.
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 SocioEconomic 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.
The Department conducts annual reviews of the National Minimum Wage, Employment Equity reporting, labour organisation registrations and collective agreements — all of which remain instruments of economic justice, social stability and transformation.
The Minister of Employment and Labour, guided by the recommendations of the National Minimum Wage Commission, continues to set the wage adjustments to balance worker protection with economic sustainability.
Since its introduction, the National Minimum Wage has benefited an estimated six million workers, and from 1 March 2026, the minimum wage increased to R30.23 per hour. This adjustment is a direct response to the rising cost of living, particularly the escalating cost of food and transport that continue to place enormous pressure on low-income households.
The Employment Equity regulatory framework underwent a significant shift following the promulgation of the Employment Equity Amendment Act and the introduction of sectoral numerical targets, replacing the long- standing Economically Active Population (EAP) model.
Since the implementation of the Employment Equity Amendment Act 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. This area remains our critical area of focus.
The fund Continues to strengthen social protection for workers while building a more capable, ethical and sustainable institution.
The Fund remains financially sustainable, with a projected surplus of R11.749 billion. Assessment revenue is expected to rise by 13% to R13.974 billion (thirteen billion, nine hundred and seventy-four million rand), supported by improved employer compliance, stronger verification processes, and focused awareness initiatives.
The largest share of expenditure in this financial year , is directed to claims and benefits so that workers and their dependants receive the compensation due to them in a fair and timely manner.
The Compensation 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
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.
Importantly, the institution supports the Presidential Climate Commission and the rollout of the National Dialogue process that is aimed at developing a People's Pact for social cohesion and national renewal. They are practical mechanisms to ensure that the just transition, economic reform, and national reconstruction occur with the participation of the people of South Africa.
Chairperson ,
Productivity growth remains one of the most decisive factors in improving competitiveness, sustaining enterprises and protecting jobs. The work of Productivity SA is key to our economic agenda.
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 with enterprise support, skills development and job retention targets being exceeded.
In the current financial year, Productivity SA aims to :
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.
The Commission saved 48% of jobs in retrenchment-related cases and expanded labour justice support through its Labour Advice Web Tool, which attracted over 70 000 active users. In 2026/27, the CCMA will continue prioritising speedy dispute resolution and job preservation by maintaining a 99% turnaround target for conciliations and arbitration awards. The CCMA is also advancing digitalisation, improving user experience, and strengthening governance systems to build a more modern and responsive institution.
The modernisation of the Unemployment Insurance Fund is the rebuilding of a social protection system that must be faster, cleaner, more accountable, and worthy of public trust.
We continue to work hard to ensure that the system works to be best benefit of the beneficiaries as an example , over the MTEF period, the UIF will further invest R4.97 billion (four billion nine hundred and seventy million rand) for operational systems and governance improvements to improve turnaround times, reduce fraud and corruption, and restore confidence in the Fund.
These investments are tied directly to measurable service delivery outcomes. In 2026/27, the UIF will process 90% of valid and invalid unemployment benefit claims within 18 working days, finalise 90% of deceased benefit claims within 20 working days, and ensure that 80% of TERS applications are approved or rejected within 20 working days, while also supporting 100 business enterprises.
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.
The Department also continues with the reconfiguration and repositioning of the UIF and Compensation Fund to strengthen governance, operational efficiency and long-term service delivery. At the same time, preventing fraud, corruption and governance failures remain fundamental to building a capable and ethical state.
Whistle-blowing mechanisms have been strengthened, internal controls tightened, and consequence management reinforced through probity audits, compliance measures and the work of the Loss Control Committee. We wish to thank all whistleblowers that has helped us arrest criminals that are stealing public funds and encourage all citizens not to look away from corruption and corrupt acts.
CALL FOR COLLABORATION AND PARTNERSHIPS
We remain focused on expanding pathways into employment, especially for young people, women, persons with disabilities, and vulnerable workers who continue to face exclusion from economic participation. Economic growth without inclusion is unsustainable. Labour rights without enforcement are meaningless.
Unemployment will not be defeated by government acting in isolation. Partnerships with business, labour and our public entities are not optional; they are essential instruments of delivery. If we are serious about tackling unemployment, then we all need to play a role and ensure that the declaration of the Freedom Charter that there shall be work and comfort is realised.
THANK YOU
© 2019 - The South African Department of Employment & Labour
