According to the latest Quarterly Labour Force Survey (QLFS) by Statistics South Africa (Stats SA), the country saw a decline in employment and a rise in unemployment during the second quarter of 2024. The number of employed individuals decreased by 92,000, bringing the total to 16.7 million, while the unemployed population grew by 158,000, reaching 8.4 million compared to the first quarter of 2024.
As a result, the official unemployment rate increased by 0.6 percentage points, now standing at 33.5%.
The survey also revealed that discouraged work-seekers rose by 147,000 (4.8%), while those not economically active for reasons other than discouragement decreased by 75,000 (0.6%). Overall, the labour force expanded by 66,000, marking a 0.3% increase.
The expanded unemployment rate, which includes discouraged job seekers, increased by 0.7 percentage points to 42.6%.
Kristal Duncan-Williams, Youth Capital Project Lead, noted that while the unemployment rate has fluctuated over time, the overall situation has worsened significantly. They argue that the sharp rise in unemployment over the past decade indicates that current interventions have been ineffective, with young people, particularly young black women, being the most affected.
Duncan-Williams emphasized that unemployment is a complex issue with no single solution. They explain while individual measures like NSFAS funding which allows students to obtain degrees, providing youth with work experience through public employment programmes and equipping them with soft skills are helpful in the fight against unemployment, it can only be effectively tackled by a growing economy.
However, they caution that any economic recovery may be marginal and must translate into job creation to avoid "jobless growth."
Furthermore, Duncan-Williams advocates for greater exploration of the informal economy as a means for individuals to earn a living. They highlight the challenges posed by bureaucracy and restrictive regulations, which make it difficult for people to trade informally, noting that South Africa's informal sector is smaller compared to neighbouring countries on the continent.
