The departure of migrant workers from clothing factories in Newcastle has exposed a contradiction in South Africa’s labour market: employers report unfilled vacancies while millions of citizens remain without work.
The disruption shows that removing migrant workers does not automatically transfer jobs to South Africans. Instead, it has brought low wages, commuting costs, limited training and pressure on local manufacturers into sharper focus.
Factories lose experienced machinists
Three Newcastle factories visited by Reuters in late July said they had lost between 12 percent and 19 percent of their workers after anti-migrant protests intensified.
The Southern African Clothing and Textile Workers’ Union estimated that about 15 percent of the city’s roughly 15,000 textile workers had left. Factory owners said some of those who departed were experienced machinists from Lesotho and Eswatini who could not be replaced immediately.
The disruption comes as South Africa’s anti-migrant movement grows around claims that undocumented foreigners are taking scarce jobs. High unemployment and weak economic growth have made migration an increasingly divisive political issue.
The wider scale of the factory shortages remains unclear, but Newcastle illustrates why migrant departures may not deliver the employment gains promised by anti-immigration campaigners.
Union disputes skills shortage
Factory owners say the sector does not have enough trained local machinists. One manufacturer began training seven South Africans after losing about 40 foreign workers but said financial pressure prevented the business from taking on more trainees.
The clothing workers’ union disputes that explanation. It says qualified South Africans are available, but low pay and commuting costs discourage many from accepting the jobs.
Labour-market researcher Siphelele Ngidi has also pointed to working conditions and limited opportunities for career advancement as reasons manufacturing jobs have become less attractive.
Many Newcastle garment workers are paid according to the number of pieces they complete. Reuters reported that only the most productive may earn the statutory minimum wage of R30.23 ($1.87) an hour, while many receive less.
A vacancy, therefore, does not necessarily amount to a viable job. Workers may possess the required skills but still find that their earnings do not cover the cost of travelling to work.
Low prices squeeze manufacturers
Factory owners say domestic retailers pay too little for locally produced garments, limiting their ability to raise wages or expand training.
Government inspections in February also uncovered illegal labour practices at some factories. Owners said the findings led to lost retail orders, adding to the financial pressure facing the sector.
South Africa’s tougher migration policy includes penalties for employers who hire undocumented workers. However, enforcement alone will not address the low-pay model that makes some factory jobs difficult to fill.
Factory owner Alex Liu warned that further disruption and closures could ultimately cost more South Africans their jobs than the migrant departures create. He said his business was operating at a loss and would decide by December whether it could remain open.
Jobs depend on wider reform
The Newcastle experience suggests that South Africa must address wages, training and industrial competitiveness alongside immigration enforcement.
Manufacturers need support to train and retain local workers. Retailers must also recognise that sustainable domestic production cannot depend on prices that leave factories unable to pay lawful wages.
Government, meanwhile, must ensure that immigration rules are enforced by state institutions rather than political groups intimidating workers.
Former president Thabo Mbeki has argued that migrants are being blamed for deeper economic failures. The pressure on Newcastle’s factories gives that warning a practical dimension.
Migrant departures have not solved unemployment. They have instead exposed an industry caught between low wages, narrow margins and mounting political pressure.
