Zimbabwe faces deepening jobs crisis

Zimbabwe is grappling with a deepening employment crisis, with the Zimbabwe Congress of Trade Unions (ZCTU) warning that mass retrenchments have overwhelmed the Retrenchment Board, leaving thousands of workers vulnerable amid worsening economic conditions.

The country has witnessed what unions describe as an "alarming surge" in job cuts across nearly all major sectors, driven by collapsing demand, rising costs and prolonged policy uncertainty. According to ZCTU, more than 20,000 workers lost their jobs in 2024, and the trend has intensified throughout 2025.

The wave of layoffs has affected some of Zimbabwe's largest employers. In February, sugar producers Triangle Limited and Hippo Valley Estates  -  both subsidiaries of Tongaat Hulett  -  initiated major staff rationalisation programmes to reduce operational expenses. By mid-2025, the Zimbabwe Consolidated Diamond Company (ZCDC) had let go of 400 employees following a sharp fall in global diamond prices. In August, infrastructure firm Bitumen World announced a significant restructuring exercise expected to render hundreds jobless, citing delayed payments from clients, including several government ministries.

ZCTU secretary-general Tirivanhu Marimo said the official figures underrepresent the scale of the crisis, as many companies are retrenching workers without notifying the Retrenchment Board, despite the legal requirement to do so.

"The situation is dire," Marimo told the Zimbabwe Independent. "The board is overwhelmed  -  and what is worse, many companies are retrenching without even following due process or notifying the board at all. The official statistics are only the tip of the iceberg."

He said the economic climate had become unbearable for businesses across manufacturing, agriculture, mining and the financial sector, warning that Zimbabwe was sliding into a full-blown jobs emergency with grave humanitarian consequences.

"Every lost job is a lost livelihood and a lost hope for a family," Marimo said. "Workers are being forced to carry the full weight of economic mismanagement, while executive pay and corporate privileges remain untouched."

Marimo further cautioned that Zimbabwe's current stability  -  anchored on tight monetary controls  -  was fragile. "Once these controls are loosened, inflation will shoot up, the cost of living will spiral and more jobs will be lost," he said, calling for a national social contract between workers, business and government to safeguard employment and revive productivity.

Labour market analysts echoed the warnings, predicting ongoing retrenchments unless the government implements broad reforms to stabilise the economy. Many companies unable to fire workers outright have resorted to wage cuts, reduced working hours or unpaid leave. Others have shut down entirely or entered corporate rescue as revenues collapse and costs  -  particularly fuel, energy and transport  -  rise sharply.

Labour lawyer and analyst Rogers Matsikidze said earlier this year that the outlook for workers remained bleak. "Indeed, there are more retrenchments. We expect a depressed labour market and that trend will continue unless we urgently address issues of imports, smuggling, and also make our products competitive," he said.

Matsikidze urged government to implement a zero-import policy on locally available products, align labour costs with regional standards, and create a regulatory environment that rewards compliance rather than punishes businesses. He also called for the formalisation of the informal sector, suggesting the expansion of models like Mbare Musika to areas such as Glen View to broaden the tax base and support the growth of formal enterprises.

He added that labour disputes involving wages, benefits and collective bargaining had risen sharply, reflecting the intense economic strain confronting workers across the country.