Zimbabwe lost over 65,000 jobs in 3 months

ZIMBABWEAN companies retrenched more than 65,000 workers in just three months last year, exposing deepening pressures in the labour market despite official claims that the economy was on a stable and positive trajectory.

The figures, contained in the Zimbabwe National Statistics Agency (ZimStat) 2025 second quarter Labour Force Survey, show widespread job losses driven by company closures, supermarket retrenchments, and distress across key sectors of the economy.

The report comes amid a period of economic turbulence in early 2025, when multiple industries - including retail, mining and manufacturing - were forced to scale down operations due to rising costs and weak demand.

Mining, particularly diamond operations, was heavily affected after falling global prices forced companies to restructure operations and reduce headcount.

At the time, authorities maintained that the macroeconomic environment was improving, citing stabilisation in inflation and exchange rates - a contrast to the labour market data showing rising unemployment.

According to ZimStat, the national unemployment rate stood at 20.7%, representing 833,527 unemployed people.

However, some independent estimates place unemployment significantly higher, reflecting ongoing debate over how joblessness is measured in an economy dominated by informal activity.

Youth unemployment remains particularly severe, with 39.3% of those aged 15 to 24 unemployed, while the rate among those aged 15 to 35 stands at 28.9%.

The survey also highlights the dominance of informal employment. Out of 3.18 million employed people, 1.86 million - or 58.5% - are in the informal sector.

Only 1.14 million people, or 35.8%, are formally employed, while a further 182,017 are engaged in household production and community-based activities.

The report notes that women are slightly more concentrated in informal work than men, reflecting broader structural challenges in labour absorption.

Mining has emerged as one of the hardest-hit sectors, with unions warning of accelerating job losses.

Zimbabwe Diamond and Allied Minerals Workers Union (ZDAMWU) secretary-general Justice Chinhema said the sector is experiencing a "dangerous" wave of retrenchments.

"We are deeply alarmed that the mining sector has entered a phase of accelerated job shedding since last year," he said, citing particularly severe impacts in diamond and lithium operations.

He added that some workers have gone for months without salaries and that pension contributions are not being remitted in some cases.

Labour lawyer Caleb Mucheche said the situation highlights the need for coordinated economic reform involving government, labour and business.

Economists say the disconnect between reported growth and employment realities reflects deeper structural weaknesses, including tight liquidity conditions, high borrowing costs and weak consumer demand.

Development economist Chenayimoyo Mutambasere warned that "stability without growth can become economically stagnant," noting that small and medium enterprises are struggling to access financing.

However, Maji-Marefu Institute of Economic Governance executive director Tapiwa Mashakada offered a more optimistic view, arguing that informal sector expansion and reported job creation in other datasets suggest a more balanced employment picture.

He said informalisation is a common feature of developing economies and not necessarily negative, though analysts caution it often reflects a lack of formal job opportunities.

The latest figures underscore a widening gap between official economic narratives and lived labour market realities, with formal employment continuing to shrink while informal survivalist activity expands.