By Nomfanelo Maziya | 2025-01-19

Business Eswatini (BE) recognising the severity of unemployment has actively engaged organised labour to collaboratively explore and implement practical and viable solutions.

Organised labour comprises of three key entities, the ministry of labour and social security, which oversees labour regulations and social security programmes, the International Labour Organisation which provides support in areas such as human capital development, social advancement, and the promotion of justice and human rights.

It also includes private sector business organisations, who work in partnership to eliminate trade obstacles, encourage sound corporate governance practices and stimulate investment.

With a meeting scheduled for January 25, where unemployment tops the agenda, BE chief executive officer, E. Nathi Dlamini, said the unemployment situation, especially among the youth, has reached a critical point.

“As BE, we are fully aware of this dire situation and strongly believe that the private sector and its workforce must unite to support the government in creating jobs,” said Dlamini.

This statement follows the recent incident, where a Southern Africa Nazarene University (SANU) business management graduate trended on both social and print media after bravely taking to the streets in her graduation gown, carrying a placard and pleading for employment.

“We are deeply empathetic to the struggles of our youth and are not surprised to see them resort to extreme measures to express their pain and frustration with joblessness,” said Dlamini. He insisted that supporting graduates’ ability to expand would create opportunities for new hires, particularly at the shop floor level.

"Time is not on our side. We must urgently accelerate our investment promotion efforts and prioritise the retention and growth of existing investors," he said.

Dlamini emphasised that BE firmly believes that a united front between the private sector and its workforce is essential to support government efforts in job creation.

"Let 2025 be a defining year for these collaborative efforts," he said.
In a recent interview, Minister of Commerce, Industry and Trade, Manqoba Khumalo expressed optimism about a significant improvement in Eswatini's employment situation within the next two years.

"Jobs are a lagging indicator. Investment goes ahead and then jobs come later as those investments start to take a hold in the economy. Most of them then ramp up employment overtime," said the minister.

He cited the recent commissioning of SOMI by His Majesty King Mswati III, a significant investment exceeding E500 million, as an example.

While these large-scale investments take time to fully materialise in terms of job creation, they are expected to generate significant employment opportunities as operations ramp up.

The textile sector, specifically the Gamula factory, serves as another example. While the factory has already created jobs, full-scale employment is anticipated as operations expand.

Minister Khumalo highlighted government's focus on key sectors such as manufacturing, mining and retail, coupled with strategic infrastructure development, to drive economic growth and generate employment opportunities.

He urged citizens to remain patient and believe in government's economic plans, assuring them that the positive economic trends observed in 2023/24 will eventually translate into tangible benefits, including job creation and improved living standards.

According to the Integrated Labour Force Survey 2023, the national youth (15-35) unemployment rate  in Eswatini stands at 48.7 per cent. Regional disparities in youth unemployment are evident.

In Hhohho, the unemployment rate for this age group is 55.8 per cent, while in Manzini it stands at 40.4 per cent.

Shiselweni experiences the highest youth unemployment rate at 59.9 per cent, followed by Lubombo at 43.6 per cent. A snapshot of the Eswatini labour market indicates that of the 793 614 individuals within the working-age population, 402 910 (50.8 per cent) are part of the labour force, meaning they are employed or actively seeking employment.

Within the labour force, 260 356 individuals are employed, representing 64.6 per cent of the total labour force. However, 30 984 of these employed individuals are underemployed, working fewer hours than they would like, constituting 11.9 per cent of the employed population.

The unemployment rate, which stands at 35.4 per cent, indicates that 142 553 individuals within the labour force are actively seeking employment, but unable to find suitable jobs.

Furthermore, 75 485 individuals are considered part of the potential labour force, meaning they are not currently employed or actively seeking employment, but could potentially enter the labour force under different circumstances.

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