Government Puts Economic Growth First to Fight Unemployment

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By: Adam Duka

On: December 20, 2025

Khumbudzo Ntshavheni - Putting Economic Growth First to Address Unemployment

South Africa’s government says it’s focused on growing the economy and creating jobs. This comes as unemployment has risen again.

Minister in the Presidency Khumbudzo Ntshavheni shared the update during a Cabinet briefing held in Tshwane on Thursday.

Unemployment Rises to 32.9%

The Quarterly Labour Force Survey by Stats SA shows that South Africa’s unemployment rate rose from 31.9% to 32.9% in the first quarter of 2025.

“Cabinet is concerned about the increase,” said Ntshavheni. “We remain committed to driving economic growth that creates jobs.”

Jobs were gained in transport and finance, but many were lost in trade and construction.

New Plans to Grow the Economy

Last week, President Cyril Ramaphosa met with business leaders to review progress on economic reforms. The government and private sector agreed to work faster on projects that can boost growth and employment.

“Some progress includes better Transnet performance, a national wheeling framework, and a new visa system for travel,” Ntshavheni explained.

A new priority action plan will be rolled out in the next three months. Government and business teams will monitor progress closely and fix any delays.

R100 Billion Transformation Fund Now Open for Public Comment

Another big move by the government is the proposed Transformation Fund.

This R100 billion fund will help black-owned businesses and small enterprises get the money they need to grow.

“This fund will support real economic transformation,” said Ntshavheni.

South Africans can share their views and suggestions by:

The deadline for public comments is 28 May 2025.

What This Means for Job Seekers

This shows the government is trying to fix the economy by:

  • Partnering with the private sector
  • Improving infrastructure and systems like transport and visas
  • Making funding available for small businesses

If these plans work, they could help create more jobs and reduce the country’s high unemployment rate.

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Adam Duka

Adam is a content writer in the career and employment space. He focuses on creating clear and reliable career content that helps South African youth move from education into real work opportunities.

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