South Africa’s unemployment rate has reached a troubling high. The latest quarterly Labour Force Survey, announced by Statistics South Africa, reveals that the unemployment rate increased from 32.9% in the first quarter of 2024 to 33.5% in the second quarter. This marks the highest unemployment rate in two years.
As Director of Labour Statistics, Dihlolelo Phoshoko, pointed out, several shifts in employment and activity rates have contributed to this increase.
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The expanded unemployment rate, which includes discouraged work-seekers who have ceased searching for work, rose by 0.7% to 42.6% in the same period. Discouraged work-seekers increased by 147,000, while the number of individuals not economically active for reasons other than discouragement decreased by 75,000.
This cumulatively resulted in an increase of 72,000 in the non-economically active population, bringing the total to 16.3 million in the second quarter of 2024.
The formal sector experienced a contraction, with employment decreasing by 77,000 jobs, while the informal sector saw an increase of 48,000 jobs. Specific industries bore the brunt of job losses, including trade (-111,000 jobs), agriculture (-45,000 jobs), private households (-182,000 jobs), construction (-11,000 jobs), and finance (-9,000 jobs). Conversely, gains were observed in manufacturing (+49,000 jobs), community and social services (+36,000 jobs), and utilities (+9,000 jobs).
The employment landscape has also shifted geographically. Notably, the largest decreases in employment were recorded in the Western Cape, Mpumalanga, and KwaZulu-Natal. In contrast, Gauteng, Limpopo, and the Eastern Cape witnessed the most significant increases in employment numbers.
This rise in South Africa’s unemployment rate underlines the ongoing economic challenges faced by the nation. Understanding the detailed figures and the factors contributing to these changes is crucial for formulating effective policies to combat unemployment. The country continues to grapple with these issues, striving for solutions to foster a more robust and inclusive labour market.
