South Africa reacts to increase in unemployment rate

South Africa’s unemployment rate for the first quarter of 2024 has increased by 0.8% to 32.9 percent, up from the 32.1% seen in the previous quarter. | Bongani Mbatha Independent Newspapers

South Africa’s unemployment rate for the first quarter of 2024 has increased by 0.8% to 32.9 percent, up from the 32.1% seen in the previous quarter. | Bongani Mbatha Independent Newspapers

Published May 14, 2024

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South Africa’s unemployment rate for the first quarter of 2024 has increased by 0.8% to 32.9 percent, up from the 32.1% seen in the previous quarter. This was revealed by statistician-general Risenga Maluleke on Tuesday.

Maluleke added that the working-age population increased by 137 000 or 0.3% in the first quarter of 2024 compared to the fourth quarter of 2023 while the number of employed persons increased by 22 000 to 16.7 million in Q1: 2024, and the number of unemployed persons increased by 330 000 to 8.2 million compared to Q4: 2023, resulting in an increase of 352 000 (up by 1.4%) in the labour force.

The latest labour force survey statistics have triggered an avalanche of criticism from various political parties as well as the labour sector.

Reacting to the latest jobs bloodbath was leader of Build One SA, Mmusi Maimane, who said the statistics are an “indication of the ANC’s inability to create new jobs and grow a vibrant, diversified economy“.

“At 41.9%, our unemployment rate remains one of the highest in the world. There are now 11.2 million people without a job or who have given up all hope of finding a job. The real cause for concern is the growth of unemployment over the past 10 years – with 3.1 million more unemployed South Africans now than in 2014.

“All indicators suggest this trend is a ticking time bomb that requires extraordinary intervention. In particular, three in every five young South Africans between the ages of 15 and 24 years old cannot find a job,“ he said.

The DA’s shadow minister of employment and labour, Michael Bagraim, said a vote for the governing party in the upcoming elections is a vote for yet another five years of increasing unemployment rates.

“With our elections a fortnight away, today’s release of the Quarterly Labour Force Survey (QLFS) for Q1:2024 presents a stark choice for the electorate. Our next five years will either be defined by a worsening unemployment crisis – or the start of a new chapter of opportunity for South Africans,” he said.

According to Nedbank: “The increase in unemployment was primarily driven by a seasonal increase in the labour force. The labour force grew by 352 000 or 1.4% as new graduates and school leavers entered the job market. Discouraged workers also usually return to the market at the start of the year with hopes of finding a job.”

StatsSA has indicated the provinces that recorded increases in employment were KwaZulu-Natal (35 000), Gauteng (26 000) and Northern Cape (4 000) when compared to the previous quarter Q4:2023 and Q1:2024.

Provinces that recorded declining numbers were the Western Cape (17 000), followed by North West (13 000), Mpumalanga (8 000), Eastern Cape (4 000) and Limpopo (3 000), while Free State remained unchanged.

Cosatu spokesperson Matthew Parks said the figures are a big concern for the federation, adding that the union is disappointed by the latest figures.

“While this is not unusual for the first quarter of the year, which normally follows a seasonal increase in jobs over the festive holidays and retail peak period during the fourth quarter of the year, it is nonetheless disappointing.

“Though we are frustrated by an increase in unemployment, we are heartened by indications in the jobs report that the mining, manufacturing and agricultural sectors are showing signs of recovering from the challenges they encountered in transporting their exports.”