Deputy President Paul Mashatile noted changes in the country’s economic patterns, but acknowledged that the pace of South Africa’s economic growth and development is protracted and not at its optimum levels.

Mashatile was speaking during the National Economic Development and Labour Council (Nedlac) 2025 annual Organised Labour School, in Pretoria, on Tuesday, where he pointed out that for the first time in a year, South Africa's official unemployment rate decreased from 33.5% in the second quarter to 32.1% in the third quarter, marking a positive shift in the country’s labour market.

However, he said while the country was promoting economic growth through investments and infrastructure development programmes, efforts had not yet yielded satisfactory results.

He wants government to better address income inequality and improve the quality of life for workers, highlighting the importance of harnessing the collective power of stakeholders to ensure that South Africa’s labour market is “inclusive, fair, and globally competitive”.

Mashatile acknowledged that the Nedlac meeting was taking place during an international poly-crisis characterised by inequality, high levels of unemployment, climate change, wars, migration, urbanisation, and the growing youth dividend.

Locally, he pointed to the current mooted closures and scaling down of production in the steel industry and some of the companies in the mining sector, which he said had resulted in massive job losses.

“Through our collective efforts, we have managed to develop collectively agreed sector plans. However, all stakeholders of Nedlac must bear the responsibility of facilitating the speedy execution of these plans for them to live up to our expected outcomes,” he explained.

POLICY INTERVENTIONS

He said over the past 30 years policy programmes aimed at creating decent employment for the people were introduced.

“Together we have created an environment for labour unions to practice their democratic rights as enshrined in the Constitution, the Labour Relations Act and other critical legislation that reversed apartheid policies thereby introducing progressive policy interventions,” he said.

He also pointed to the introduction of the minimum wage, the two-pot retirement system as well as other policies that cushioned workers and the poor.

“…these and many other progressive policies are a result of our commitment to transforming the economy and society so that many who were excluded can meaningfully participate in the economy.

“However, despite the progressive policy interventions we have introduced, we are still faced with the challenges of high levels of unemployment and poverty as well as inequality. We are also faced with challenges of crime, gender-based violence, and corruption as well as weak implementation and delivery of services,” Mashatile added.

He stated that the labour movement is and has always been more than just a defender of workers' rights, but also a pivotal driver of South Africa’s economic progress.

He added that by advocating for better working conditions, the movement inherently promoted increased productivity and, ultimately, GDP growth.

Collaborative efforts between unions and employers have fostered a culture of innovation, resilience, and shared prosperity, he said.