The latest Quarterly Labour Force Survey (QLFS) results for South Africa have been released, shedding light on the country's unemployment landscape. According to Statistics South Africa (StatsSA), the country's unemployment rate has seen a slight improvement, decreasing from 32.1% in the third quarter to 31.9% in the fourth quarter of 2024.
The fourth quarter of 2024 saw a positive shift in employment, with 132,000 more people securing jobs. This brings the total number of employed individuals in South Africa to 17.1 million. Meanwhile, the number of unemployed people dropped by 20,000, with the total figure now at 8 million.
The above 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.
Key Findings from the QLFS
- Labour Force Expansion: The overall labour force grew by 0.4%, an increase of 112,000 people.
- Discouraged Work Seekers: The number of discouraged work seekers rose by 111,000 (a 3.3% increase).
- Economically Inactive: The number of people not economically active for reasons other than discouragement decreased by 93,000 (a 0.7% decline).
- Not Economically Active: An increase of 18,000 people was recorded in the "not economically active" category.
- Sectoral Employment Trends:
- Employment in the formal sector rose by 90,000.
- Employment in the informal sector increased by 34,000.
Despite these gains, StatsSA reported that the expanded unemployment rate for the fourth quarter remained unchanged at 41.9% compared to the previous quarter.
The biggest employment gains were seen in the finance sector, which added 232,000 jobs, and the manufacturing sector, which grew by 41,000 jobs. Conversely, there were employment losses in sectors such as community and social services, trade, construction, mining, utilities, and agriculture.
Employment gains were most prominent in South Africa's three most populous provinces: Western Cape, KwaZulu-Natal, and Gauteng. However, employment losses were observed in the Free State, North West, and Limpopo.
Youth Unemployment Trends
Youth unemployment remains a critical issue, with South Africans aged 15 to 34 continuing to face significant barriers in the job market. Although the number of unemployed youth decreased by 133,000 to 4.7 million, the number of employed youth increased by 37,000 to 5.8 million.
As a result, the youth unemployment rate dropped slightly from 45.5% in the third quarter to 44.6% in the fourth quarter of 2024.
Government Initiatives to Address Unemployment
In response to high unemployment rates, President Cyril Ramaphosa announced the launch of the Jobs Boost Fund—a R300 million, pay-for-performance initiative designed to create high-quality, sustainable employment opportunities for unemployed and marginalized youth.
The Jobs Boost Fund has pioneered a new model that links funding for skills in demand for the successful placement and particularly employment for young people. We are expanding our support for small and medium enterprises and the informal economy which sustains millions of jobs.
The programme operates in multiple phases, including recruitment, job readiness workshops, and finally, job placement. Participants are placed in sustainable jobs for at least six months, giving them the opportunity to build a career and gain valuable work experience.
