Lesotho
By Thabo Mosia
The Kingdom of Lesotho has declared a national state of disaster due to skyrocketing unemployment and widespread job losses, largely fuelled by uncertainty over United States tariffs. The declaration, gazetted on Monday, 7 July 2025, under Legal Notice No. 102 of 2025 and signed by Acting Prime Minister Justice Nthomeng Majara, will remain in effect for two years until 30 June 2027. This step comes after the release of the 2024 Lesotho Labour Force Survey, which revealed an unemployment rate of 30.1%, up from 22.5% in the last survey in 2019. For young people aged 15 to 35, the figure is even higher at 39%, with young women facing 41% unemployment. The government hopes this will allow it to suspend certain laws, waive fees, and fast-track initiatives to create 62,000 jobs and boost youth-led enterprises.
The 2024 Labour Force Survey: A Grim Picture
The 2024 Labour Force Survey, launched on 4 July 2025 by the Ministry of Labour and Employment in partnership with the International Labour Organization, paints a stark reality of Lesotho’s job market. Conducted by the Bureau of Statistics, it shows that out of a working-age population of about 1.4 million, only around 700,000 are in the labour force. The labour force participation rate stands at 50.3%, meaning half of those who could work are either employed or actively seeking jobs. However, with 30.1% unemployed, over 210,000 people are without work.
Youth bear the brunt, with 38% overall youth unemployment (15-24 years at 35%, 15-35 at 39%). This includes 41% for young women compared to 35% for young men, highlighting gender disparities. The survey also notes high underemployment, where many workers are in low-paying or part-time roles not matching their skills. Informal employment dominates at 45%, often in agriculture or small trades, offering little security.
The previous 2019 survey had shown 22.5% unemployment, but experts attribute the rise to economic shocks like the COVID-19 pandemic, climate change affecting agriculture, and now global trade disruptions. Rural areas suffer more, with unemployment at 32% versus 28% in urban zones. The report calls for urgent skills training, entrepreneurship support, and diversification beyond textiles and agriculture.
US Tariffs and Textile Industry Devastation
The crisis escalated due to US tariffs imposed under President Donald Trump, targeting Lesotho’s exports amid claims of high duties on American goods – a figure Lesotho disputes as exaggerated at 99%. Initially proposed at 50% for some products, the tariffs were paused for 90 days but reduced to 30% for Lesotho, with appeals made to lower them further to 10-20% depending on items. As of 11 July 2025, Lesotho has received no official communication on further increases set for 1 August, similar to South Africa’s recent letter.
Even the uncertainty has caused havoc. Under the African Growth and Opportunity Act (AGOA), Lesotho exported duty-free textiles worth over $400 million annually to the US, supporting 40,000 jobs – about 10% of GDP. But fears of tariffs led US buyers to cancel orders, halting production. Factories like those in Maseru and Maputsoe have laid off thousands, with some closing entirely. One major plant sent home 90% of its 2,000 workers, while others suspended lines, risking up to 40,000 job losses if AGOA access ends.
Communications Minister Nthati Moorosi explained that investors are scared off, saying, “it has affected particularly the textile industry. As you know that Lusutu had the AGOA agreement with the with the with the US government. Uh we were supplying a lot of our goods, the textile industry goods to the US government, I mean to the US market. And this the the tariffs has scared most of the investors who who were making clothes in Lisutu. Now there has been some cut of jobs which unfortunately also I don’t have the exact figures but we’ve seen some of the the textile industry firms closing down uh with the fear of the same issue of tariffs.”
Cuts to US aid, including USAID programmes, have worsened the blow, disrupting health and education support tied to economic stability.
Public Outcry and Recruitment Chaos
Unemployment became a hot topic last month when videos spread online showing thousands of desperate young Basotho queuing at Lesotho Defence Force recruitment centres for just a few spots. Long lines snaked for kilometres, with some waiting days, highlighting the lack of opportunities. Social media buzzed with frustration, calls for action, and stories of graduates driving taxis or farming subsistence plots.
GroundUp reports echoed this, noting job cuts in textiles as factories scaled back ahead of tariffs. One worker, Limpho Lefalatsa, shared her shock after 12 years in a factory: laid off due to order drops, she now struggles to support her family on meagre savings.
Government’s Response and Initiatives
The state of disaster allows legal flexibilities to address bottlenecks. Minister Moorosi clarified it’s now for general unemployment, not just youth: “the national state of disaster. I think I I I first of all have to clarify that it is no longer just on youth unemployment. It’s on unemployment in general. initially as as we I don’t know how much you know of the background to to this declaration is that young people sort of uh expressed the need for for for unemployment to be to be given enough attention and to be declared as a national disaster and uh initially the thinking was that it would be a national disaster around youth unemployment but now um the cabinet has has has has has now come to a conclusion to make it a disaster for the whole country a national unemployment disaster.”
Key measures include:
Free business registration for small enterprises and youth.
A M400 million (about R400 million) fund for youth-led startups.
Reduced costs for tender documents, previously M500 to M3,000.
New procurement policy reserving 40% of public contracts for youth, women, and people with disabilities.
Expansion of programmes like Sebabatso, linking young entrepreneurs with global mentors, and Weekend Flea Markets for local trading.
Trade, Industry and Business Development Minister Mokhethi Shelile said this gives leverage to create jobs and revive the economy. Ministries are compiling a master plan, with each committing to specific job targets. Efforts focus on retaining textiles by targeting new markets like South Africa and diversifying into agriculture, tourism, and renewables.
Moorosi added: “some conditions have already been lifted to enable employment to trigger to trick it to tricker in. and we are also building the the general action plan with different ministries. Um so that’s that’s where we are. We don’t have a master plan as yet but different ministries have numbers that they have declared in front of everyone that this are the numbers of new opportunities that we are going to create and that’s what we are building a master plan with and the road map and what’s going to happen and what needs to happen. But I want to maybe emphasize that we we actually want to see how we can maintain the textile industries as the government of Lutu even without the AUA uh agreement because it’s important that we continue with that. We know that the different countries are still lucrative markets. Even our neighbors here in South Africa, it is still a lucrative market that we are also looking into how we can produce for themt.”
Broader Challenges: Brain Drain, Migration, and Healthcare
Lesotho has long faced brain drain, with skilled professionals like doctors and engineers moving to South Africa or beyond for better pay. Moorosi noted: “I think Lisu has suffered the brain drain for the longest time. Um I I think it’s it’s been happening for for for a very very long time especially most of them going to the neighboring countries in South Africa.”
Unskilled workers cross borders illegally for jobs as domestics, herders, or construction hands. Recent Binational Commission agreements allow 90-day visa-free stays, reducing monthly returns but not stopping flows. Illegal mining in South Africa involves Basotho, though Moorosi stressed it’s a multi-national issue needing bilateral talks.
Healthcare access is strained, with Basotho often seeking treatment in South Africa, paid for by the government or individuals. Recent South African moves to block undocumented foreigners from services worry officials, but Moorosi said: “though Basutu in big numbers would go to South Africa to access medical health care all of that was paid for it’s not for free it was paid for the government of Nutu used to pay for its patients where it was for referrals like that and individuals also go there to pay so I think it’s it’s something that the government will have to clarify so that we also as the government in to know how to act and what to do.”
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