Unemployment Rate
By Lerato Mpembe
South Africa’s official unemployment rate has declined by 0.2 percentage points to 31.9% in the fourth quarter of 2024, down from 32.1% in the previous quarter, according to the latest Quarterly Labour Force Survey (QLFS) released by Statistics South Africa (Stats SA) on Tuesday.
The data shows that employment figures improved with 132,000 more people securing jobs, bringing the total employed population to 17.1 million. Meanwhile, the number of unemployed persons decreased by 20,000 to 8.0 million, contributing to an overall labour force increase of 112,000 (0.4%).
Despite these improvements, the number of discouraged work-seekers increased by 111,000 (3.3%), while those not economically active for reasons other than discouragement decreased by 93,000 (0.7%). This resulted in an increase of 18,000 in the non-economically active population, bringing the total to 16.5 million.
“The changes in employment and unemployment resulted in the official unemployment rate decreasing by 0.2 of a percentage point from 32.1% in the third quarter of 2024 to 31.9% in the fourth quarter of 2024,” Stats SA stated.Meanwhile, the expanded unemployment rate—which includes discouraged work-seekers—remained unchanged at 41.9%, indicating that millions of South Africans are still struggling to find jobs.
Employment Gains and Sectoral Performance
The QLFS data reveals that formal sector employment increased by 90,000 jobs, while the informal sector added 34,000 jobs in the fourth quarter.
Sectors That Gained Jobs:
✅ Finance: +232,000
✅ Manufacturing: +41,000
Sectors That Lost Jobs:
❌ Community & Social Services: -63,000
❌ Trade: -48,000
❌ Construction: -22,000
❌ Mining: -18,000
❌ Utilities: -17,000
❌ Agriculture: -11,000
Provincial Breakdown: Where Jobs Increased and Declined
While some provinces experienced job growth, others recorded losses.
📈 Provinces That Gained Jobs:
🔹 Western Cape: +62,000
🔹 KwaZulu-Natal: +52,000
🔹 Gauteng: +45,000
📉 Provinces That Lost Jobs:
🔻 Free State: -25,000
🔻 North West: -20,000
🔻 Limpopo: -16,000
This data highlights regional disparities in job creation, with urban and industrial hubs faring better than rural provinces.
Youth Unemployment Remains a Major Challenge
Despite an overall decline in the unemployment rate, youth unemployment remains alarmingly high.
The total number of unemployed youth (aged 15-34) decreased by 133,000, bringing the figure to 4.7 million. Meanwhile, the number of employed youth increased by 37,000, reaching 5.8 million.
As a result, the youth unemployment rate dropped from 45.5% in Q3 2024 to 44.6% in Q4 2024.
While this 0.9% decrease is a positive sign, experts warn that youth unemployment remains a major structural issue in South Africa, requiring urgent interventions in education, skills development, and entrepreneurship.
What This Means for South Africa
✅ Positive Signs of Economic Recovery: The drop in unemployment, albeit small, signals that some sectors are recovering, particularly finance and manufacturing.
✅ Urban vs Rural Divide: Major job gains are concentrated in urban provinces (Gauteng, Western Cape, KZN), while rural areas continue to struggle.
✅ Youth Struggles Persist: The youth unemployment rate remains critically high, despite a slight improvement.
Economic analysts believe that sustained economic growth, increased investment, and structural labour market reforms are necessary to bring down long-term unemployment.
“While the decline in unemployment is a step in the right direction, more needs to be done to create sustainable jobs, especially for the youth,” said an economic analyst.
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