South Africa Tightens Immigration Labor Rules, Deepening Divisions in Inner Johannesburg

Johannesburg, South Africa – In the cramped alleys of Fordsburg, central Johannesburg, Junaid Mohammed (name changed) stands behind the counter of a family store that has existed for decades. His father started with a general grocery. Today, the shop survives on cheap imports from China and ever-thinning profit margins.

Junaid does not call it decline. He calls it survival. But the bigger change is not in what he sells, but in whom he hires.

Junaid employs only foreigners as shop assistants and packers. According to him, this is not a deliberate choice. It began with cost, then became habit, and ultimately necessity. "Hiring locals became expensive," he says.

South Africa's minimum wage is about $1.87 per hour, roughly $324 per month, plus mandatory contributions and strict labor protections. Junaid says that cost is beyond his means. He now pays about $12 per day, below the legal minimum wage, and hires only when business allows. "If business is good, we can hire more. But when it's not busy, we can say we don't need you now," he explains.

Outside the shops, pressure is mounting. Across South Africa, vigilante groups like Operation Dudula and the March and March movement have conducted "people's raids" on businesses allegedly hiring foreigners. Some incidents have turned violent. Simultaneously, the state is tightening enforcement. President Cyril Ramaphosa has condemned vigilante actions and promised to recruit 10,000 labor inspectors.

For employers like Junaid, pressure comes from both sides. A labor law violation could force them to close. "I don't know what I'm going to do," he worries.

Anti-immigrant sentiment has grown stronger. Some groups blame undocumented migrants for unemployment and demand their deportation. The government insists enforcement is only about legal compliance, not politics, but the language used is direct. "The reason you see many companies hiring illegal immigrants is cheap labor. That's exploitation. That's profit-making," South Africa's Deputy Minister of Labour Jomo Sibiya told Al Jazeera. He added: "If this worker gets injured... they have no obligation to take him to the hospital or report it."

However, he also distinguishes between documented and undocumented labor. "We are not saying that no foreigners should come to work in South Africa... We are saying we cannot continue to have job opportunities taken by those who are in the country illegally."

South Africa's unemployment rate is around 33%. Youth unemployment is much higher, exceeding 60% for the 15-24 age group. Government officials argue that high unemployment makes labor enforcement both an economic and an immigration issue. They contend that employers hiring illegal immigrants can gain an unfair advantage by paying below legal standards and avoiding some obligations of formal employment.

Labor authorities also argue that undocumented workers are particularly vulnerable to exploitation because their immigration status may deter them from reporting abuse or seeking help from state agencies. This concern has become a central justification for the government's increased inspections and fines for employers violating labor laws.

Supporters of the crackdown argue that stronger enforcement will help protect labor standards and create more opportunities for South Africans seeking jobs. Critics, however, question whether tougher immigration enforcement can address the country's deep-seated employment challenges. Against this backdrop, foreign labor has become a political flashpoint.

Inside Johannesburg's inner city, the picture is more complex. Loren Landau, a migration researcher at the University of Oxford, says undocumented workers are concentrated in the hardest-to-regulate sectors. "From an employment perspective... there are huge advantages to hiring foreigners. You can always threaten them with deportation, or not pay them." He dismisses the idea of simple favoritism: "Certainly, employers will exploit that. It's rational. That immigrants won't go to the labor department to complain makes it more attractive. It's not inherent favoritism. It's profit-maximizing favoritism."

Policies are now shifting toward legal employment. A draft plan proposes fines of up to 1 million South African rand ($61,700) for hiring undocumented workers. Deputy Minister Sibiya says the goal is to cut demand. "Cut the demand, and you will see fewer and fewer people coming to work illegally."

Yet migrants are deeply embedded in Johannesburg's informal economy – running shops, moving goods, sustaining trade in decaying inner-city blocks. Urban planner Tanya Zack argues that this role is often overlooked. "A lot of money is generated by migrants selling fast fashion... very important to a failing inner city. If we could invest in infrastructure and law enforcement to make it safer, you could capture more for the South African economy," she said. She dismisses claims that migrants are entirely outside the tax system. "There is no system for the informal economy. They are increasingly using card and digital banking systems." According to her, cities are being reshaped, with or without policy.

In practice, enforcement is already underway: raids, arrests, deportations. Undocumented citizens from several African countries are being repatriated from South Africa, emboldening anti-immigrant groups. But things seem far from resolution. Landau argues that the current situation is becoming self-reinforcing. "Right after Ramaphosa's speech... Operation Dudula was back on the streets. They have no reason to stop. It shows these movements are working. It's like pouring fuel on the fire."

* Name changed.