South Africa’s official unemployment rate has increased for the third consecutive quarter, reaching 33.5% in the April-June period of 2024, according to data released by Statistics South Africa on Tuesday.
This marks the highest unemployment rate since COVID-19 restrictions were lifted in the second quarter of 2022, though it remains below the record high of 35.3% recorded in late 2021.
Statistician-General Risenga Maluleke highlighted the ongoing challenge, stating, “The number of jobs being created is insufficient to address the issue of unemployment.”
Reducing the country’s unemployment rate—one of the highest globally—has become a top priority for the coalition government formed after the African National Congress lost its parliamentary majority in May’s election.
In a recent address, President Cyril Ramaphosa emphasized that small businesses and the informal sector are seen as key drivers of potential job creation over the next five years.
However, economist Sanisha Packirisamy from Momentum Investments noted that while employment recovery has occurred in highly skilled sectors, particularly services, unskilled and semi-skilled workers have seen little improvement.
Packirisamy also indicated that significant job creation would take time, suggesting that notable employment growth is unlikely in the remainder of the year. Under an expanded definition of unemployment, which includes those who have stopped looking for work, the jobless rate rose to 42.6% in the second quarter, up from 41.9% in the previous quarter.
The statistics agency reported that the number of unemployed individuals increased to 8.384 million in the April-June period, up from 8.226 million in the first quarter. Five of the ten industries monitored by the agency saw employment declines in the second quarter, with the most significant job losses occurring in trade and agriculture.
The hotel and restaurant sector, part of the trade industry, was particularly hard-hit, losing 87,000 jobs and becoming the largest contributor to joblessness in that sector.
