South Africa's Jobless Rate Increases
South Africa's unemployment rate increased in the first quarter of this year, raising concerns among statisticians as more individuals appear to have stopped seeking employment. The official unemployment rate, already among the world's highest, climbed to 32.9% from 31.9% in the previous quarter. An expanded definition, including those discouraged from seeking work, rose to 43.1% from 41.9%.
Desiree Manamela, chief director of labour statistics at Stats SA, expressed concern over the increasing number of discouraged work-seekers, emphasizing the importance of people actively participating in the labor market. The statistics agency tracked ten industries, with five reporting employment increases and five experiencing decreases. The trade and construction sectors saw the largest job losses, while the transport and finance sectors added the most jobs.
Black women and young people remain particularly vulnerable to unemployment, with rates of 39.8% and 46.1%, respectively, in the first quarter. Reducing unemployment is a key priority for the government of national unity, formed after the ANC lost its parliamentary majority for the first time since the end of apartheid in 1994.
Unemployment has been rising since 2016 and has remained above 30% for the past five years. President Cyril Ramaphosa recently announced new reforms to boost economic growth and job creation, extending a program launched in 2020. Operation Vulindlela, meaning “open the path” in isiZulu, has had some success, such as reducing electricity blackouts, but has not yet significantly impacted the unemployment rate.