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The government's annual report on employment equity reveals that South Africa's labor market reflects clear racial, gender and disability disparities, with top management and senior management positions dominated by white and Indian men.
“The high representation of foreign nationals at all occupational levels in the economy, particularly in public universities, remains a matter of concern and should be vigilantly monitored,” it said.
Trends observed from named employers' employment equity reports indicate that the labor market structure remains hierarchical in terms of “race, gender and then disability”.
The 26th Commission on Employment Equity (CEE) report, “Bridging the Equity Gap through Diversity and Inclusion” says, “The top two decision-making occupational levels (top management and senior management) are racially and gender-biased, with white and Indian population groups at these levels being dominated by men.”
“Notably, most of the named groups, in particular, black women and individuals with disabilities, are concentrated primarily within the lower-to-middle-management occupational levels of the workforce. Although there has been encouraging growth in women's representation in the lower-to-middle-management occupational levels, this upward movement has not yet translated into substantial gains at the senior management and top management occupational levels.”
The report is based on an analysis of employment equity (EE) data in reports submitted by designated employers – those who employ 50 and more workers – in the 2025 employment equity reporting cycle.
This is a recent thing Report by the Solidarity Research Institute in collaboration with the Free Market FoundationEstimated annual compliance costs with broad-based BEE at R149bn-R290bn, equivalent to 2%-4% of the country's R7.3-trillion GDP.
The Employment Equality Amendment Act, which allows the Labor Minister to set strict, sector-specific numerical racial targets, has drawn sharp criticism, with some businesses and opposition parties condemning it as unconstitutional.
However, President Cyril Ramaphosa has defended the law as an important constitutional tool to correct systemic inequalities.
business group sakeliga has called on its more than 12,000 members to disregard the act, which came into effect on January 1, 2025, dismissing it as irrational, harmful and unconstitutional and calling for it to be scrapped.
cee report states that the “persistent under-representation” of persons with disabilities at all occupational levels in all economic sectors for decades, at slightly above 1%, remains a matter of great concern.
“An ambitious five-year sector target was set by CEE across all 18 economic sectors, urging employers to prioritize and adopt assertive strategies when developing and implementing their employment equity plans. Additionally, the high representation of foreign nationals at all occupational levels in the economy, particularly in public universities, remains a concern and should be vigilantly monitored,” the report said.
That's as anti-immigration groups March and March held demonstrations across the country on Tuesday, calling on people living in South Africa illegally to leave the country.
anti-immigration activist Ngizwe Mchunu, Nkosikhona “Phakelumthakathi” Ndabandaba and MARCH and MARCH leader Jacinta Ngobse regularly accuse foreigners of taking South Africans' jobs and competing with them for access to meager basic services such as health care and education.
“As a country struggling with high unemployment rates, it is essential for South Africa to thoroughly review the legislative framework governing labor migration and take appropriate action where necessary.”
The CEE notes that since the promulgation of the amended EE law and its regulations, “a number of legal challenges have been mounted against the Minister of Employment and Labour, the Director General of the Department and the CEE”.
“These matters largely relate to the constitutional validity, legality and practical implementation of the revised employment equity framework and its sector-specific numerical targets,” the report said.
“The outcome of these cases will play an important role in shaping the future interpretation and application of EE legislation, defining the limits of ministerial authority and influencing the trajectory of change in the South African labor market.
“Considering the pending court decisions on EE cases, CEE urges all employers to continue to implement the amended Employment Equity Act to promote equity in their respective workplaces and create a diverse and inclusive workplace free from unfair treatment and discrimination.”
CEE uses the Economically Active Population (EAP) produced by Stats SA as a benchmark to assist employers in the analysis of their workforce to determine the degree of under- or over-representation of designated groups and non-designated groups in the workforce. The EAP includes individuals aged 15–64 who are either employed or unemployed but looking for employment.
In terms of EAP, according to a review of the report, the African population group accounts for 81.3% for both sexes; The colored population group is 8.6% for both sexes; The white population group totals 7.7%; And the Indian population group is 2.4%.
At the top management level, the representation of the white population is 57.1%, which is almost seven times its EAP, while the representation of the Indian population is 12.2%, which is five times its EAP. In contrast, African population representation at 21.1% is almost four times below its EAP, and Colored population representation at 6.4% is slightly below its EAP at this occupational level. Foreign national representation at this occupational level is 3.1%.
The 26th CEE Annual Report covers the period 1 April 2025 to 31 March 2026. During 2025/26, 5,090 reports were submitted covering 6,896,041 employees. The highest number of reports were received from the manufacturing sector, followed by wholesale and retail trade; Repair of motor vehicles and motorcycles; and agriculture, forestry and fishing sectors.
Outgoing CEE President Nicole Devakiram said, “CEE will continue to strive for diversity and inclusivity for all individuals who were previously disadvantaged in the workplace, regardless of the outcome of the lawsuit.”
Cosatu spokesperson Zanele Sabela said the labor federation was “deeply disappointed by the slow pace of change in South Africa's labor market after 32 years in democracy”.
“The market is still racially and gender-based, and little progress has been made to accommodate people with disabilities in the workplace,” Sabella said.
“This year’s report exposes the various efforts to circumvent employment equity legislation as fraudulent and misguided, as the data clearly shows that much more needs to be done to ensure we correct the injustices of the past.”
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