Picture: High rate of unemployment grapples SA/Generic
By REGINALD KANYANE
30 September 2026 – The Motor Industry Staff Association (MISA) has raised concern over South Africa’s unemployment crisis, warning that government austerity measures and rising interest rates are placing additional pressure on workers and businesses. In a statement, MISA said the country’s unemployment crisis had reached catastrophic levels and accused the state of deepening the problem rather than addressing it.
The association’s concerns follow the South African Reserve Bank’s decision to increase the repo rate by 25 basis points, from 7% to 7.25%, marking the second increase this year.
MISA CEO, Martlé Keyter said the combination of reduced public spending and higher borrowing costs was placing a double burden on workers. Keyter said government austerity and rising interest rates are a double blow to workers.
“One starves the economy of the investment that creates jobs, the other raises the cost of everything from a home loan to a car. MISA opposed measures that deepened poverty and called for public investment and job creation to be prioritised in economic policy.
“MISA said the latest repo rate increase could have direct consequences for the retail motor industry, as higher interest rates make vehicle financing more expensive, potentially reducing demand for vehicles and putting jobs at risk,” she said.
Keyter further said they have noted that dealerships, workshops and aftermarket businesses across the motor industry value chain employ more than 500 000 people. She added that increased borrowing costs would place additional pressure on households already struggling with vehicle repayments and other expenses.
“MISA called for economic policies that prioritise public investment, industrial development and employment creation to address the country’s unemployment crisis,” said Keyter.
Meanwhile, Independent Economist, Duma Gqubule criticised the country’s record on job creation. Gqubule said South Africa had created approximately two million jobs over the past 17 years, while the labour force continued to grow by between 600 000 and 700 000 people annually.
He argued that economic growth alone would not be sufficient to address unemployment, calling for stronger industrial policies and an expansion of public employment programmes.
“We need a 4 to 6% GDP growth rate just for the 600,000 who are joining the workforce. Even with a growth rate of 6%, we will still have high unemployment. So, we have to do more than just grow the economy faster.
“We need strong industrial policies to create labour-intensive sectors. We have to rapidly expand public employment programmes,” he said.
Gqubule also criticised austerity measures, arguing that cuts to infrastructure, healthcare and education spending undermine job creation and discourage private-sector investment. He further raised concerns about the cancellation of the Presidential Employment Stimulus, which he said had created more than two million work opportunities.
