Job losses plague Zimbabwe's retail, mining sectors

Zimbabwe is facing a deepening employment crisis, with thousands of workers losing their jobs across the retail and mining sectors, as worsening power shortages, policy inconsistencies, and a sluggish global commodities market continue to hammer the economy. The job losses have exposed long-standing structural weaknesses and ignited calls for urgent policy interventions to prevent further economic and social fallout.

Industry sources report that major retail chains have been forced to scale down operations or close entirely, while key mining companies — particularly in lithium, platinum, coal, and diamond production — are cutting output and shedding jobs. The Confederation of Zimbabwe Retailers (CZR) has sounded the alarm, describing the situation as a clear reflection of collapsing business confidence and macroeconomic instability.

Denford Mutashu, president of the CZR, said the sector is buckling under falling consumer demand, high interest rates, unreliable electricity supply, and growing competition from the informal market.

"The Confederation of Zimbabwe Retailers shares the concern of workers, consumers, and industry stakeholders over these troubling developments, which reflect broader structural and economic challenges facing the retail and wholesale sector," said Mutashu. "The sector, which remains one of the largest employers in the formal economy, is under considerable pressure."

Though exact figures remain difficult to verify, the extent of the downturn is said to be severe, with formal retailers increasingly unable to compete or meet overhead costs. Mutashu called on the government to establish a targeted bailout fund, extend concessional loans, reduce interest rates under state-supported financing schemes, and implement regulatory reforms to preserve formal employment.

The mining sector is equally reeling from the economic storm. Justice Chinhema, secretary-general of the Zimbabwe Diamond and Allied Minerals Workers Union, described the retrenchments as "scary", especially in the lithium industry where over 2,000 workers have already been laid off. He also revealed that the Zimbabwe Consolidated Diamond Company had begun a voluntary retrenchment exercise, with compulsory layoffs expected soon.

"The platinum sector is not stable either, with falling global prices driven by geopolitical tensions between the West and the East," said Chinhema. He added that RioZim, one of the country's largest private employers, is on the brink of collapse, placing more than 2,000 additional jobs at risk.

Chinhema urged the government to fast-track value addition policies to ensure minerals are processed locally, thereby creating new employment opportunities along the mineral value chain.

"If our minerals are not exported [in raw form], then new jobs in the value chain will be emerging," he said, also raising concern over the long-term impact of the global transition away from coal, which could further destabilize employment in the sector.

The labour movement is also feeling the pressure. Florence Mucha Taruvinga, president of the Zimbabwe Congress of Trade Unions (ZCTU), said that retrenchments in the retail sector are depleting union membership and highlight the broader collapse of formal employment structures.

"We are greatly concerned as a trade union about the current state of affairs," she said. "The retail industry has retrenched quite a significant number of workers. We have noticed a marked decrease in membership, and this we associate with the closing down of retail outlets and the breakdown in the value chain."

Taruvinga urged the government to convene a national dialogue that brings together policymakers, business leaders, and labour representatives to craft a solution that is consistent with international labour standards and responsive to workers' needs.

Caleb Mucheche, chairperson of the Association of Labour Practitioners of Zimbabwe, likened the situation to a humanitarian crisis, accusing both government and business of allowing the labour market to deteriorate into a state of despair.

"Some employers are shedding staff due to depressed capacity utilisation, whilst some employees are crying foul due to what may be described as slave working conditions," said Mucheche. "The working class is swimming and drowning in the jaws of abject poverty and penury."

While acknowledging government rhetoric aimed at improving the investment climate, Mucheche dismissed much of it as empty talk.

"More practical action is required as opposed to some empty pub or beerhall talk, so that deliverable and tangible results are produced for the benefit of the people of Zimbabwe, not just a talkshop," he said.

The dual crises in mining and retail not only threaten Zimbabwe's already fragile formal economy but also put significant pressure on tax revenues and public services, while pushing more citizens into the informal economy or into reliance on diaspora remittances. Economic analysts warn that without bold and immediate interventions — including stimulus packages, policy clarity, and structural reforms — Zimbabwe risks entering a prolonged phase of de-industrialisation and labour market collapse, with far-reaching social and political consequences.