Foreign nationals are increasingly occupying entry-level jobs that could be filled by South Africans, the Department of Employment and Labour says.
The comment comes as government pushes forward with plans to tighten rules governing the hiring of foreign workers.
The warning comes after labour inspectors found 231 850 foreign nationals employed across 21 371 workplaces during inspections conducted in the first half of the 2026/2027 financial year.
According to the department’s Inspection and Enforcement Services (IES) branch, many of the positions occupied by foreign nationals were low-skilled and entry-level jobs.
“It is unfortunate because most of these are entry-level jobs that could easily have been occupied by South Africans,” IES Inspector-General Aggy Moiloa said during the department’s Public Employment Services Strategic Planning Conference in Rustenburg last week.
Amendment bill affords minister more control
The findings have added momentum to the controversial Employment Services Amendment Bill, which seeks to give the government greater control over the recruitment of foreign nationals while prioritising employment opportunities for South Africans.
Under the proposed legislation, employers would have to prove that no suitably qualified South African citizen or permanent resident is available before recruiting a foreign national. Businesses would also be required to implement skills-transfer plans aimed at ensuring expertise is passed on to local workers.
Most significantly, the bill would empower the minister of employment and labour to set quotas limiting the number of foreign nationals employed in specific sectors, occupations or regions.
Scale of foreign employment
The department’s latest inspection report highlights the scale of foreign employment across the economy.
Gauteng recorded the highest number of foreign nationals employed at inspected workplaces, with 59 624 workers, followed by North West with 58 533 and the Western Cape with 34 675.
Agriculture emerged as the biggest employer of foreign nationals, accounting for
46 533 workers across 1 205 employers. Wholesale and retail ranked second, employing 41 359 foreign workers across 6 698 businesses.
Other sectors with large numbers of foreign workers include community services, manufacturing, hospitality, construction, mining, private security, financial services and education.
Politically sensitive debate
The issue has become one of the most politically sensitive labour debates in the country, driven by persistently high unemployment levels and growing public concern that South Africans are being displaced from jobs, particularly at the lower end of the labour market.
Parliament recently received more than 15 000 public submissions on the Employment
Services Amendment Bill, making it one of the most heavily contested pieces of labour legislation currently before lawmakers.
The bill has attracted intense public interest because it would allow the labour minister to impose sector-specific limits on the employment of foreign nationals. MPs have described the legislation as touching directly on unemployment, labour market access and social stability.
Business groups have cautioned that some industries rely on foreign labour to address labour shortages and operational needs. Trade unions and community organisations have argued that stronger enforcement is needed to ensure South Africans are prioritised for available jobs.
Tougher penalties
The proposed amendments also introduce tougher penalties for non-compliance. Employers found to have contravened the law could face fines ranging from R100 000 for a first offence to the greater of R1-million or 10% of annual turnover in severe cases.
If enacted, the bill would represent the most significant overhaul of South Africa’s
foreign employment framework in more than a decade, as government responds to mounting concerns over the growing presence of foreign nationals in entry-level jobs.
- Labour inspectors found 231,850 foreign nationals employed across 21,371 workplaces during the first half of the 2026/2027 financial year, many in low-skilled and entry-level jobs.
- The Employment Services Amendment Bill aims to give the government more control over recruiting foreign nationals and prioritize employment for South Africans by requiring proof that no qualified local candidates are available.
- The bill would empower the labour minister to set quotas limiting foreign nationals employed in specific sectors, occupations, or regions, and mandate skills-transfer plans from employers.
- Gauteng had the highest number of foreign workers at inspected workplaces (59,624), followed by North West (58,533) and Western Cape (34,675), with agriculture being the largest sector employing foreign nationals.
- Non-compliant employers could face fines from R100,000 for a first offence up to R1 million or 10% of annual turnover for severe violations under the proposed legislation.
Foreign nationals are increasingly occupying entry-level jobs that could be filled by South Africans, the Department of Employment and Labour says.
The comment comes as government pushes forward with plans to tighten rules governing the hiring of foreign workers.
The warning comes after labour inspectors found 231 850 foreign nationals employed across 21 371 workplaces during inspections conducted in the first half of the 2026/2027 financial year.
According to the department’s Inspection and Enforcement Services (IES) branch, many of the positions occupied by foreign nationals were low-skilled and entry-level jobs.
“It is unfortunate because most of these are entry-level jobs that could easily have been occupied by South Africans,” IES Inspector-General Aggy Moiloa said during the department’s Public Employment Services Strategic Planning Conference in Rustenburg last week.
The findings have added momentum to the controversial Employment Services Amendment Bill, which seeks to give the government greater control over the recruitment of foreign nationals while prioritising employment opportunities for South Africans.
Under the proposed legislation, employers would have to prove that no suitably qualified South African citizen or permanent resident is available before recruiting a foreign national. Businesses would also be required to implement skills-transfer plans aimed at ensuring expertise is passed on to local workers.
Most significantly, the bill would empower the minister of employment and labour to set quotas limiting the number of foreign nationals employed in specific sectors, occupations or regions.
The department’s latest inspection report highlights the scale of foreign employment across the economy.
Gauteng recorded the highest number of foreign nationals employed at inspected workplaces, with 59 624 workers, followed by North West with 58 533 and the Western Cape with 34 675.
Agriculture emerged as the biggest employer of foreign nationals, accounting for
46 533 workers across 1 205 employers. Wholesale and retail ranked second, employing 41 359 foreign workers across 6 698 businesses.
Other sectors with large numbers of foreign workers include community services, manufacturing, hospitality, construction, mining, private security, financial services and education.
The issue has become one of the most politically sensitive labour debates in the country, driven by persistently high unemployment levels and growing public concern that South Africans are being displaced from jobs, particularly at the lower end of the labour market.
Parliament recently received more than 15 000 public submissions on the Employment
Services Amendment Bill, making it one of the most heavily contested pieces of labour legislation currently before lawmakers.
The bill has attracted intense public interest because it would allow the labour minister to impose sector-specific limits on the employment of foreign nationals. MPs have described the legislation as touching directly on unemployment, labour market access and social stability.
Business groups have cautioned that some industries rely on foreign labour to address labour shortages and operational needs. Trade unions and community organisations have argued that stronger enforcement is needed to ensure South Africans are prioritised for available jobs.
The proposed amendments also introduce tougher penalties for non-compliance. Employers found to have contravened the law could face fines ranging from R100 000 for a first offence to the greater of R1-million or 10% of annual turnover in severe cases.
If enacted, the bill would represent the most significant overhaul of South Africa’s
foreign employment framework in more than a decade, as government responds to mounting concerns over the growing presence of foreign nationals in entry-level jobs.
