South Africa’s official unemployment rate rose to its highest in a year by 0.8 of a percentage point to 32.9% in the first quarter of 2024, up from 32.1% recorded in the fourth quarter of 2023.
Statistics South Africa (Stats SA) today said the number of unemployed persons increased by 330 000 to 8.2 million, up from 7.9m in the previous quarter, marking the highest figure since comparable records began in 2008.
Additionally, the number of people who were not economically active for reasons other than discouragement decreased by 214 000 to 13.1m, while discouraged work-seekers decreased by 1 000 in the first quarter of 2024 compared to the fourth quarter of 2023. Stats SA said this resulted in a net decrease of 215 000 in the not economically active population.
As a result, the unemployment rate according to the expanded definition also increased by 0.8 of a percentage point to 41.9% in the first quarter of 2024 compared to Q4: 2023.
“Decreases in employment were recorded in the Western Cape with 17 000, North West 13 000, Mpumalanga 8 000, Eastern Cape 4 000, and Limpopo with 3 000. The Free State employment remained unchanged,” Stats SA said.
“In conclusion the number of employed youth decreased by 7 000 to 5.9m while the number of unemployed youth increased by 236 000 to 4.9m in the first quarter of 2024, resulting in the youth unemployment rate increasing by 1.3 of a percentage point to 45.5% in the first quarter of 2024.”
According to Stats SA’s Quarterly Labour Force Survey (QLFS), the number of employed persons increased by 22 000 to 16.7m in the first quarter of 2024 compared to the fourth quarter of 2023.
Formal sector employment increased by 56 000 in the first quarter while informal sector employment decreased by 100 000 over the same period.
The industries that contributed to the net employment increase include trade, manufacturing, private households, transport, agriculture, and mining.
The youth (15 to 34 years) remained vulnerable in the labour market.
The total number of unemployed youth increased by 236 000 to 4.9m while there was a decrease of 7 000 in the number of employed youth to 5.9m.
This resulted in an increase in the youth unemployment rate by 1.3 percentage points, from 44.3% to 45.5%.
BUSINESS REPORT