Publications
Partners
- For more financial news, go to the News24 Business front page.
The fourth-quarter unemployment rate rose by 0.2 of a percentage point to 32.1% from 31.9% in the third quarter, Statistics SA data shows. The increase in unemployment is yet another blow for the ANC ahead of a national election in which the party is expected to lose its majority.
The increase in the number of people without jobs comes after two consecutive quarters of a decline in SA’s jobless rate and makes a mockery of President Cyril Ramaphosa’s State of the Nation Address earlier this month when he spoke about the recent declines in unemployment and said the government had "enabled a diverse economy whose minerals, agricultural products and manufactured goods reach every corner of the world, while creating jobs in South Africa".
The number of employed people dropped by 22 000 to 16.7 million in the fourth quarter and the number of unemployed persons increased by 46 000 to 7.9 million during the same quarter. Unemployment has ballooned in the past decade, from 4.8 million in the fourth quarter of 2013.
The number of people who were not economically active for reasons other than discouragement increased by 218 000 to 13.4 million, while discouraged work-seekers decreased by 107 000 in the fourth quarter of 2023 compared to the third quarter of 2023. This resulted in a net increase of 111 000 in the not economically active population, Stats SA said.
Formal sector employment fell by 128 000, while informal sector employment climbed by 124 000. The industries that contributed to the net employment decline included community and social services, construction, agriculture, trade and manufacturing. The industries that added jobs were finance, transport, mining and private households.
The unemployment rate, according to the expanded definition, decreased 0.1 of a percentage point to 41.1% quarter-on-quarter.
With the SA Budget due on Wednesday and government already under pressure to lessen inequality and increase social welfare grants, the rise in unemployment will add extra strain when it comes to funding needs. Further, almost half of the young people in SA are sitting without jobs.
“The youth remain vulnerable in the labour market,” Stats SA said. The fourth quarter of 2023 results show that the total number of unemployed youth increased by 87 000 to 4.7 million while there was a decrease of 97 000 in the number of employed youth to 5.9 million. This resulted in an increase in the youth unemployment rate by 0.9 of a percentage point to 44.3%, it said.
