Understanding The Rise In The Unemployment Rate in 2023


Please share this article

Advertisement


While South Africa’s official unemployment rate climbed during the first three months of the year, jobs are still being created in several economic sectors. The official labour force statistics were released earlier this week.

 


Advertisement i


The official unemployment rate now stands at 32,9% after it increased marginally during the first three months of 2023. This was revealed on Tuesday in the Quarterly Labour Force Survey (QLFS) from Statistics South Africa (StatsSA). 

The QLFS revealed that the number of employed persons in South Africa increased by 258,000 to 16,2 million people in the first quarter of 2023 compared to the previous three months. 

The number of unemployed people grew to 7.9 million during the first three months of the year after 179 000 people became unemployed. 

While loadshedding has a devastating impact on business and productivity, more people started seeking employment in 2023. 

The number of discouraged work-seekers decreased by 87,000 in the first quarter of 2023 compared to the fourth quarter of 2022 resulting in a net decrease of 296,000 in the not economically active population.

Additionally, the number of people who were not economically active for reasons other than discouragement decreased by 209,000 to 13,2 million. 

As a result of the decline in discouraged work-seekers and other economically inactive individuals, there was a net decrease of 296,000 in the not economically active population.

The changes in the employment and unemployment statistics resulted in the official unemployment rate increasing by 0.2 percentage points to 32,9% in the first quarter of 2023. 

The unemployment rate according to the expanded definition decreased by 0.2 percentage points to 42,4%. The expanded definition of unemployment provides a broader perspective by including discouraged workers and potential labour force participants in the statistics. 

Where Jobs Were Gained And Lost

Jobs were gained in several economic sectors. The most jobs were created in the Finance sector, Community and Social Service sector and the agriculture sector. They contributed 184,000 jobs, 175,000 jobs and 27,000 jobs respectively. 

Most of the job losses recorded in the first quarter were in Private Households where 85,000 jobs were lost. Job losses were also recorded in Trade (28 000), Mining (24 000), Construction (11 000) and Manufacturing (2 000).

The provinces of Gauteng, Limpopo, the Western Cape and KwaZulu-Natal accounted for the largest employment increases in 2023. They created 80,000 jobs, 71,000 jobs, 62,000 jobs and 54,000 jobs respectively. 

Employment losses were recorded in Mpumalanga where 45,000 jobs were lost followed by the North West and Free State where 4, 000 each were lost. 

The unemployment rate reflects the state of the job market in the South and gives key insights into the number of people who want to work but cannot find employment, the number of people who do not want to seek work and which economic sectors are impacting the unemployment rate.

 

Suggested Article:

An electrical engineer at work.

The electricity crisis has become frustrating for many, but South Africans can make use of this problem to become qualified for certain in-demand jobs, which in turn creates employment. 






Online Shopping Links

Takealot - Temu - Amazon - Shein




Advertisement


WhatsApp Channel

Sponsored Ad

Advertisement

Advertisement

Google News

Post-Matric Options

 

After completing your matric certificate exams, you are faced with a lot of post-matric options that can shape your future paths.

These options range from pursuing higher education at universities or colleges, entering vocational training programs, joining the workforce, or even starting your own business. There are so many choices but we are here to help.

Advertisement


Where to Study


Advertisement m


Other Articles

Over the past few weeks, thousands of Grade 11 and Matric students were informed that they did not receive an offer to study at a Public University. Every year, only a fraction of applicants are successful, which severely impacts the future plans of these students and their parents, who do not know what their further options are.  


Advertisement


Latest SASSA articles

Sassa revealed that individuals can submit Sassa grant applications online. Here's everything you need to know about Sassa online grant applications. 

Millions of people living in South Africa are unemployed. These people can apply for the R370 grant in June 2024. 


Advertisement


Careers Advice

Everyone is spending so much time online these days - which has lead to Digital Marketing growing into a big business. Working in Digital Marketing promises a long and profitable career but what exactly does a Digital Marketer do? And how do you get into Digital Marketing?


Advertisement i