Saftu Calls for Basic Income Grant as Job Losses Deepen Unemployment, Poverty Crisis
Rising fuel costs immediately push up transport costs, food prices, logistics, paraffin, electricity and the general cost of survival.
The South African Federation of Trade Unions (SAFTU) says in a statement it notes with grave concern the latest Quarter 1 2026 Labour Force Survey released by Statistics South Africa.
The figures expose an economy in deep structural crisis and a society being pushed towards desperation. In the first three months of 2026 alone, South Africa lost 345 000 jobs and unemployment increased by 301 000 people, Saftu says.
The losses were in the following sectors with community and social services sectors being the most affected by shedding 206 000 jobs, followed by construction with 110 000 jobs, then transport lost 30 000 jobs and private households lost some 28 000 jobs.
“At this pace, thousands of households are being pushed deeper into poverty every single day”.
The official unemployed rate rose from 31.4% to 32.7% while the expanded unemployment rate rose to 43.7%. Youth unemployment surged to approximately 45.8% and discouraged work seekers increased to nearly 4 million people, the survey has shown.
“This means nearly one out of every two economically active South Africans is unemployed or has given up looking for work. These are not normal economic fluctuations. This is structural collapse. While small gains were recorded in manufacturing, mining and agriculture, they were overwhelmed by devastating losses elsewhere,” says Saftu.
Saftu says it has consistently warned South Africa cannot sustain employment growth while continuing down the path of deindustrialisation. Although manufacturing recorded a small quarterly increase, the broader trend remains deeply alarming. Recent Quarterly Employment Survey data showed manufacturing losing 61 000 jobs in Q4 2025 alone and approximately 127 000 jobs year-on-year.
“Since 1994 South Africa has progressively weakened its productive industrial base. The country increasingly exports raw materials while importing finished goods that could and should be produced locally.
“Entire industries have been weakened or destroyed - textiles, steel, engineering, metal fabrication, agro-processing and manufacturing value chains. Industrial towns continue to collapse while the economy becomes increasingly dependent on imports, debt, speculative finance and precarious informal activity”.
Fuel Price Increase
Saftu warns the latest fuel price increases will intensify the crisis facing both workers and the unemployed. Rising fuel costs immediately push up transport costs, food prices, logistics, paraffin, electricity and the general cost of survival.
“The poor suffer the most because every fuel increase affects taxi fares, bread prices and access to work opportunities. The current global geopolitical instability, including wars, sanctions, military escalation and energy market volatility, is now directly punishing the South African working class”.
A R1 500 Basic Income Grant
As a solution to counter the poverty being visited on many struggling families because of the high cost of food, electricity and water, Saftu reiterates its demand for a R1 500 basic income grant saying the scale of unemployment now requires urgent intervention.
“SAFTU reiterates its demand for the immediate implementation of a permanent R1 500 Basic Income Grant for the unemployed and poor.The current SRD grant remains far below the poverty line and wholly inadequate for survival.
“SAFTU rejects the dishonest claim that South Africa cannot afford such a grant. The real question is political priorities. South Africa loses hundreds of billions annually through illicit financial flows, corruption, transfer pricing, tax avoidance, procurement corruption, illicit trade and corporate tax reductions.
“SAFTU has consistently proposed that the grant can be funded through increasing corporate income tax, a progressive wealth tax on multimillionaires and billionaires, a financial transactions tax, recovering money lost through corruption and illicit financial flows and ending wasteful subsidies and incentives benefiting corporations and elites.
A country with an expanded unemployment rate approaching 44% cannot continue pretending that millions will somehow escape poverty without decisive state intervention”.
A New Economic Path Required for South Africa
The Q1 2026 Labour Force Survey confirms that South Africa faces a deep structural economic crisis that cannot be resolved through denial or cosmetic reforms, says Saftu while tabling an eight point plan for the way forward.
SAFTU reiterates its call for:
• the abandonment of austerity,
• massive state-led industrialisation,
• rebuilding rail, energy and logistics infrastructure,
• protection of local industries,
• expansion of public employment,
• decisive action against illicit trade,
• reduction of fuel levies,
• and a developmental state capable of creating decent work.
“Without a decisive change in economic direction, unemployment, poverty and inequality will continue to deepen with severe consequences for social stability and national cohesion.”
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