The Harsh Reality of Job Losses in 2025: What Excuses Will Politicians Offer Now?

In the early hours of this new year, we’ve been greeted with disheartening news that sets a somber tone for the economic landscape of 2025. ArcelorMittal South Africa, the nation’s sole primary steelmaker, has announced the closure of its long steel business, which includes the significant mill in Newcastle. This decision is poised to result in up to 3,500 job losses, a stark indicator of the challenges our economy faces right from the start of the year.

This news comes amidst broader economic forecasts predicting more job losses across various sectors throughout 2025, painting a grim picture of what lies ahead. With the economy already showing signs of struggle, the question on everyone’s mind is: What will our politicians say now?

Historically, politicians have been adept at crafting narratives that sometimes stretch the truth to maintain public confidence. Here’s a speculative look at some of the potential “explanations” we might hear:

Temporary Economic Adjustment: Politicians might claim that these job losses are part of a necessary economic adjustment to realign with global market demands. They might argue that this is a short-term pain for long-term gain, despite the immediate hardship on workers and their families.
Global Market Pressures: Expect to hear a lot about how global market conditions, particularly the influx of cheap steel imports from China, are to blame. This externalization of responsibility avoids addressing local policy failures that could have mitigated such impacts.

Energy and Logistics Costs: High energy and logistics costs have been cited by ArcelorMittal SA as significant factors leading to this decision. Politicians might echo this, suggesting that these costs are beyond their control, conveniently overlooking potential government interventions that could have been implemented to support the industry.

Investment in Green Technology: In an attempt to pivot the narrative towards positivity, some might claim that the job losses are a necessary step towards transitioning to a greener economy. While this might be true in the long run, it does little to comfort those immediately affected without a clear plan for retraining or new job creation.

Blaming the Opposition: It’s almost inevitable that blame will be shifted towards political opponents. If the current government is from one party, they might argue that previous administrations laid the groundwork for these economic woes, or if in opposition, they might criticize the current government’s lack of foresight or action.
Promise of Future Opportunities: Politicians might offer vague promises of future job opportunities in emerging sectors, without concrete plans or timelines. This tactic buys time while offering hope, but often lacks the immediacy required for those suddenly out of work.

The closure of ArcelorMittal’s long steel business is more than just a corporate decision; it’s a reflection of broader economic issues that require real, actionable solutions from our leaders. The community of Newcastle, along with the affected workers and their families, will be watching closely to see if the government steps up with more than just rhetoric. Will there be genuine support systems, retraining programs, or economic revitalization plans? Or will we be fed the same old comforting lies wrapped in political promises?

As we move forward into 2025, let’s keep our eyes open, not just for the economic challenges but for how our politicians choose to address them. The true test of leadership will be in their actions, not their words.

Stay informed, stay skeptical, and stay engaged.