The Limpopo provincial government has expressed concern over insufficient job creation despite a reported decline in the official unemployment rate, as recent Statistics South Africa data reveals a stark picture for the province’s economically active youth.
In the fourth quarter of 2025, Limpopo’s official unemployment rate fell to 28.2%, down from 29.8% in the third quarter and 35% in the second quarter. This modest improvement aligns with broader national trends, where South Africa’s unemployment rate decreased to 31.4%. The province contributed 0.9% to national GDP growth toward the end of last year, and employment figures rose, with an increase of approximately 64,000 jobs throughout 2025 compared to the start of the year.
Premier Phophi Ramathuba highlighted these developments in her recent State of the Province address, noting significant job creation for youth through private sector investments trickling into the province. She emphasized plans to accelerate industrialization and pointed to infrastructure improvements, such as water provisioning to mines, as key to unlocking further economic potential. The provincial government relies heavily on sectors like mining, agriculture, and tourism but acknowledges challenges in mining areas, including criminal activity.
However, critics argue the official figures mask deeper issues. The expanded unemployment rate—which includes discouraged workers who have stopped looking for jobs—stood at 46.1% in Limpopo for the fourth quarter, indicating that just over 46% of economically active young people have ceased job-seeking efforts.
DA Limpopo Chairperson Lindy Wilson described the decline in the official rate as marginal and a “statistical illusion,” arguing it fails to account for those who have lost hope. She criticized the slow pace of industrialization and suggested opportunities like building factories at mine doorsteps to manufacture goods locally.
EFF Limpopo Chairperson Lawrence Mapoulo echoed concerns about the sluggish progress in industrialization, stating that strides could be made by locating manufacturing directly adjacent to mining operations.
The ANC maintains its plans are on track. Limpopo ANC MPL Basikopo Makamu highlighted completed bulk infrastructure for water provisioning, including to mines like those in Thabazimbi, as steps that will boost the economy. He noted ongoing reliance on mining, agriculture, and tourism, while recognizing challenges in criminal-prone mining areas.
Economic analyst Stephen Mantsho cautioned that projected economic growth of 1-1.5% does not necessarily translate to substantial job creation or employment growth. He advocated for greater investment in infrastructure development to stimulate real progress.
Unemployed young people have called for more government support, particularly funding for young entrepreneurs. One young person noted that many are creating self-employment but lack capital, suggesting that government input into young businesses could improve employment levels.
Premier Ramathuba is expected to address questions on the province’s economic prospects and related matters in the coming days.
