QLFS: Free Market Foundation urges adoption of labour law exemptions for the long-term unemployed

FMF Press Release (Economy Growth Business 3)

11 November 2025

Blaai af vir Afrikaanse weergawe.

As Statistics South Africa today released the Quarterly Labour Force Survey for Q3 2025 showing the official unemployment rate falling slightly to 31.9%, the Free Market Foundation (FMF) has published a new policy report that declares the country’s 11.4 million unemployed citizens are being “locked out of the formal economy by labour laws that were meant to protect them.”

Authored by FMF Policy Officer Zakhele Mthembu, “Defusing the Joblessness Timebomb: Restoring Dignity and Choice Through Labour Regulation Exemption” proposes the immediate introduction of a Job Seekers Exemption Certificate (JSEC) – a free, instantly revocable certificate that allows any person unemployed for six months or longer to opt out of every labour law for 24 months.

The report was launched at a press briefing this morning, and forms part of the FMF’s Liberty First (LibertyFirst.co.za) initiative.

“The national minimum wage and rigid hiring and dismissal rules have become weapons of exclusion, pricing low-skilled workers out of jobs they desperately want,” writes Mthembu. “The result is not protection but mass destitution dressed up as ‘fairness’.”

Under the JSEC, unemployed South Africans could walk into any municipality, prove six months of joblessness, and walk out with a certificate that suspends minimum wage laws, bargaining-council extensions, dismissal procedures, and equity targets. Employment would be channelled to households and small-to-medium enterprises – the real engines of job creation.

Reacting to today’s QLFS figures, FMF Head of Policy Martin van Staden said:

“Unemployment remains a pressing crisis that demands bold, practical solutions. The Job Seekers Exemption Certificate is exactly that – a voluntary, constitutional mechanism that trusts South Africans to negotiate their own salvation instead of begging politicians for jobs that will never come.”

The report demonstrates evidence that lowering the price of labour creates jobs. South Africa’s own Employment Tax Incentive (ETI) already proved the principle: tax breaks for hiring youth led to sustained employment gains. The JSEC goes further by eliminating the most burdensome compliance costs.

“The JSEC would be a solution to this problem, as it would give those who choose to be issued with it a higher likelihood of being in employment,” Mthembu emphasises. “Rather than an elaborate central plan for creating jobs, the JSEC would put the power in the people’s hands.”

Constitutionally robust, the JSEC is voluntary, narrowly tailored, and advances dignity, equality, and freedom far more than the labour laws that have “protected” over 11 million people into poverty.

Implementation would be simple and corruption-resistant: municipalities issue certificates instantly, free of charge, and with little room for abusive exercise of discretion. After two years, the certificate expires; the newly skilled worker steps into the mainstream market stronger and integrated into the labour force.

Youth unemployment – over 60.0% among 15-24 year olds and over 46% overall for 15-35 year olds – receives particular attention. With 60% of the unemployed lacking matric, the report argues that wage floors and regulatory barriers condemn an entire generation to idleness.

The JSEC was first developed by FMF President Eustace Davie and builds on global evidence from wage-subsidy programmes that consistently deliver higher employment, especially for low-skilled and young workers.

The FMF calls on Parliament to enact a standalone Job Seekers Exemption Certificate Act or urgent amendments to existing labour legislation before the end of the 2026 legislative session.

Click here to view the full report.

Click here to view the press briefing.

Ends.

***

QLFS: Vryemarkstigting dring aan op aanneming van arbeidsreg-vrywarings vir langtermyn-werkloses

11 November 2025

Scroll up for English version.

Namate Statistieke Suid-Afrika vandag die Kwartaallikse Arbeidskragemagpeiling (QLFS) vir die derde kwartaal van 2025 vrystel wat toon dat die amptelike werkloosheidsyfer effens gedaal het tot 31.9%, het die Vryemarkstigting (FMF) ’n nuwe beleidsverslag gepubliseer wat verklaar dat die land se 11.4 miljoen werklose burgers “buite die formele ekonomie gesluit word deur arbeidswette wat veronderstel was om hulle te beskerm.”

Die verslag, geskryf deur FMF Beleidbeampte Zakhele Mthembu, “Defusing the Joblessness Timebomb: Restoring Dignity and Choice Through Labour Regulation Exemption”, stel die onmiddellike aanneming voor van ’n Werksoekersvrystellingsertifikaat (JSEC) – ’n gratis, onmiddellik herroepbare sertifikaat wat enige persoon wat ses maande of langer werkloos is, in staat stel om vir 24 maande uit die toepassing van alle arbeidswetgewing te tree.

Die verslag is vanoggend tydens ’n perskonferensie bekendgestel en vorm deel van die FMF se Liberty First-inisiatief (LibertyFirst.co.za).

“Die nasionale minimumloon en rigiede aanstellings- en ontslagreëls het wapens van uitsluiting geword wat laegeskoonde werkers uit werksgeleenthede prys wat hulle desperaat begeer,” skryf Mthembu. “Die gevolg is nie beskerming nie, maar massa armoede wat as ‘billikheid’ vermom word.”

Kragtens die JSEC kan werklose Suid-Afrikaners na enige munisipaliteit stap, ses maande se werkloosheid bewys, en met ’n sertifikaat uitstap wat minimumloonwette, bedingingsraad-besluite, ontslagprosedures, en gelykheidsteikens opskort. Indiensneming sal na huishoudings en klein- tot mediumgrootte ondernemings gekanaliseer word – die werklike enjins van werkskepping.

In reaksie op vandag se QLFS-syfers het FMF Beleidshoof, Martin van Staden, gesê:

“Werkloosheid bly ’n dringende krisis wat dapper, praktiese oplossings vereis. Die Werksoekersvrystellingsertifikaat is presies dit – ’n vrywillige, grondwetlike meganisme wat Suid-Afrikaners vertrou om hul eie verlossing te onderhandel in plaas daarvan om by politici te bedel vir werk wat nooit gaan kom nie.”

Die verslag toon oortuigende bewyse dat die verlaging van die prys van arbeid werk skep. Suid-Afrika se eie Employment Tax Incentive (ETI) het reeds die beginsel bewys: belastingverligting vir die aanstelling van jeugdiges het tot volgehoue indiensnemings gelei. Die JSEC gaan verder deur die mees belastende nakomingskostes uit te skakel.

“Die JSEC sal ’n oplossing vir hierdie probleem wees, aangesien dit diegene wat kies om dit te ontvang, ’n groter waarskynlikheid van indiensneming sal gee,” beklemtoon Mthembu. “In plaas van ’n ingewikkelde sentrale plan vir die skepping van werk, sal die JSEC die mag in die mense se hande plaas.”

Grondwetlik robuust, is die JSEC vrywillig, nou geteiken, en bevorder waardigheid, gelykheid, en vryheid veel meer as die arbeidswette wat meer as 11 miljoen mense in armoede in “beskerm” het.

Implementering sal eenvoudig en korrupsiebestand wees: munisipaliteite reik sertifikate onmiddellik en gratis uit, met min ruimte vir diskresionêre misbruik. Na twee jaar verval die sertifikaat; die nuut bekwaamde werker tree sterker en geïntegreer in die hoofstroom-arbeidsmark in.

Jeugwerkloosheid – meer as 60% onder 15-24 jariges en meer as 46% algemeen vir 15-35 jariges – kry besondere aandag. Met 60% van die werklooses wat nie matriek voltooi het nie, argumenteer die verslag dat loonvloere en regulatoriese hindernisse ’n hele generasie tot ledigheid verdoem.

Die JSEC is oorspronklik ontwikkel deur FMF President Eustace Davie en bou op globale bewyse uit loonsubsidieprogramme wat konsekwent hoër indiensneming lewer, veral vir laegeskoonde en jong werkers.

Die FMF doen ’n beroep op die Parlement om voor die einde van die 2026 wetgewende sitting ’n selfstandige Werksoekersvrystellingsertifikaatwet of dringende wysigings aan bestaande arbeidswetgewing aan te neem.

Klik hier om die volledige verslag te lees.

Klik hier om die perskonferensie te besigtig.

Einde.

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