Economy

SA workers pin hopes on revised budget to ease economic pressure

Date: May 20, 2025

As Finance Minister Enoch Godongwana prepares to table the revised national budget this week, South Africa’s (SA) major labour unions are calling for a shift in focus.

They want government to move away from austerity and instead prioritise people, jobs, and economic recovery.

The country continues to battle sluggish economic growth and alarmingly high unemployment. Labour federations including Cosatu, Fedusa and Saftu say previous budgets have failed to bring meaningful change and warn that workers are growing increasingly anxious.

They’ve urged the minister to steer clear of harsh spending cuts, which they believe have only deepened poverty and weakened the state’s ability to provide services.

SA’s expanded unemployment rate, which includes discouraged job seekers, has climbed above 43%. For many in the labour movement, this points to a country in distress.

Matthew Parks, Cosatu’s parliamentary Co-ordinator, says the budget must directly confront the root causes of the crisis.

“We’ve had barely one percent economic growth over the past 15 years. Unemployment is at crisis levels. Poverty, inequality, crime and corruption are all entrenched. From public service departments to municipalities and state-owned enterprises, the state is under serious pressure,” said Parks.

Union leaders are urging the government to boost investment in sectors that can generate employment and deliver basic services. They argue that without a bold shift in fiscal priorities, the economic situation could further deteriorate.

--ChannelAfrica--

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