Expert questions the effectiveness of surprise labor inspections in South Africa

By July 2026, the share of old-age pension payments provided proactively in Uzbekistan without citizens submitting applications increased to 85%. In the first month after the system launch in 2025, this figure was 42%.

Nuriddin Shadikhodjayev, Deputy Director of the Pension Fund, presented these data at a Senate meeting on August 7, 2026. He reported that the Pension Fund has established electronic data exchange with eighteen ministries and agencies for the automatic assignment of old-age pensions.

One of the main obstacles at the initial stage was the incomplete digitization of citizens' employment records. Shadikhodjayev noted that initially there were problems regarding how completely citizens' data across all periods of their work had been digitized in the relevant ministries and agencies, but these issues are now being resolved in stages.

Questions about the system's operation

Senator Malika Kadirkhanova asked a question about the system's functioning. According to her, about eight thousand applications were received over six months, some of which concerned incomplete service records due to deficiencies in data digitization. Applicants indicated that in certain cases, this led to the assignment of smaller pension amounts.

Kadirkhanova also asked how many such cases were identified after the system launch and whether similar problems would arise when expanding the proactive mechanism to disability pensions.

System development and plans

Shadikhodjayev explained that the system's efficiency gradually improved as data was digitized. In the first month after implementation in 2025, 42% of eligible citizens received pensions proactively, and by July 2026, this percentage reached 85%. Since the system launched, 154,205 citizens have been assigned old-age pensions without the need to apply, as they did not need to separately visit the Pension Fund or submit documents.

The Pension Fund announced plans to fully transition relevant public services to proactive and electronic formats by the end of 2027. It is also proposed to extend the experience of automatic assignment of old-age pensions to citizens with disabilities of the I and II groups. According to estimates, this process will allow approximately 52,000 people to receive pensions annually without applying.

Senators approved the relevant amendments providing for the proactive assignment of pensions to citizens with disabilities of the I and II groups. The new rules also include automatic recalculation of pensions and protection against excessive deductions.

Implementation requirements

Senate Chairman Tanzila Narbaeva emphasized that the digitization of pension services should not create additional difficulties for citizens. She noted that organizational and technical problems arising during the implementation of new standards must be promptly eliminated.

Furthermore, she stressed the need to inform people with disabilities about the new opportunities. In her opinion, the Pension Fund, the Ministry of Justice, disability associations, and specialized non-governmental non-profit organizations should participate in these efforts.

The unemployment crisis in South Africa is deepening as jobs disappear in some sectors that traditionally provided employment for millions of people. Experts warn that weak economic development, declining investment, and rising costs make it difficult for businesses to hire new employees.

According to the latest Labour Force Survey published by Statistics South Africa, the official unemployment rate in the country increased from 32.7% to 33.6% in the second quarter of 2026. This resulted in approximately 345,000 people joining the unemployed, bringing the total to around 8.5 million.

The new data has raised questions about whether the South African economy is creating enough jobs. Job losses were recorded mainly in the public and social services, mining, agriculture, and manufacturing sectors.

Professor Raymond Parsons of the NWU Business School characterized the latest figures as a 'sad picture,' but noted that the problem is deeper than just the current quarter. He stated that unemployment in South Africa is not only a cyclical phenomenon but also a deeply rooted structural problem.

According to Parsons, South Africa's economic growth remains trapped in a narrow corridor of 1–2%, which prevents it from generating employment at the necessary scale. He also pointed to a worrying drop in investment: the volume of new projects announced in the first half of 2026 decreased by 81% to 137 billion rand compared to 718 billion in 2025. Parsons emphasized that the weak fixed investment forecast requires economic reforms and capital injection to pull the economy out of its current low growth trajectory.

Nkosinat Malangu, a youth employment specialist from the Momentum Group Foundation, expressed particular concern about the situation of youth, who continue to face obstacles entering the labour market. He noted a mismatch between the skills acquired by young people and the needs of employers, as well as the fact that many young workers are forced to accept short-term positions with low guarantees.

Malangu specifically highlighted job losses in the manufacturing and agricultural sectors, as these industries previously provided entry-level positions for youth growth. He added that high fuel and electricity costs create additional pressure on businesses, while unpredictable weather complicates ensuring stable employment in agriculture. He called on the government and private sector to take joint action and align educational programs with real labour market demand, insisting that entrepreneurship must be a viable part of economic activity.

Agricultural economist Vandile Sichlobo cautioned against interpreting the latest decline in agricultural employment as a sign of industry collapse. He reported that about 944,000 people were employed in agriculture in the second quarter, which was 2% less than the previous quarter but 4% more than the previous year. Sichlobo noted that these figures are generally better and significantly exceed the sector average of 799,000 people. Nevertheless, he warned of potential future pressure on employment due to rising fuel and fertilizer prices, increasing electricity costs, and the expected El Niño drought.

The National Youth Development Agency (NYDA) reported that the youth unemployment rate rose from 45.8% in the first quarter to 47.4% in the second quarter, meaning nearly one in two young people in the labour market is jobless. The agency stressed that the problem of youth unemployment cannot be solved solely with upskilling advice; the economy must create enough opportunities to apply these skills.

NYDA also pointed out that 36.4% of youth aged 15–24 are neither employed, studying, nor training, calling for increased public and private investment in manufacturing, infrastructure, agro-processing, green economy, and digital industries to create mass employment.

Benny van Zyl, General Manager of TLU SA, argued that the employment crisis cannot be explained by a single factor, insisting that businesses require an environment that stimulates investment and growth. He listed obstacles such as policy uncertainty, labour legislation, poor infrastructure, railway problems, and inefficient ports. Van Zyl also pointed to the impact of government policy, crime, and corruption on people's willingness to participate in the South African economy.

The Department of Employment and Labour described the latest data as a 'reality check,' noting that the labour market is under sustained pressure due to structural weaknesses, sluggish investment, and limited capacity to absorb new workers. The Ministry stated that job creation requires a coordinated response between the state and the private sector, including accelerating initiatives such as Operation Vukindlela and the President's Employment Stimulus.