According to data from the Bureau of Statistics, the unemployment rate in the fourth quarter rose 0.2 points to 32.1% from 31.9% in the third quarter. The rising unemployment rate is another blow to the ANC ahead of national elections in which it is expected to lose its majority.
The rise in the number of unemployed people comes after SA's unemployment rate fell for two consecutive quarters, and President Cyril Ramaphosa spoke about the recent drop in unemployment in his State of the Union address earlier this month, with the government announcing He is mocking what he said. “It has enabled a diversified economy with minerals, agricultural and industrial products reaching every corner of the world, while creating jobs in South Africa.”
The number of people employed in the fourth quarter fell by 22,000 to 16.7 million, while the number of unemployed people increased by 46,000 to 7.9 million in the quarter. The number of unemployed people has ballooned over the past decade, up from 4.8 million in the fourth quarter of 2013.
The number of people who are economically inactive for reasons other than disappointment increased by 218,000 to 13.4 million, while the number of discouraged job seekers increased in the fourth quarter of 2023 compared to the third quarter of 2023. This was a decrease of 107,000 people. According to Statistics SA, the number of economically inactive people increased by 111,000.
Formal sector employment decreased by 128,000 people, while informal sector employment increased by 124,000. Industries that contributed to the decline in net employment included community services, construction, agriculture, trade, and manufacturing. Industries that increased employment were finance, transportation, mining, and private households.
Based on the expanded definition, the unemployment rate fell by 0.1 percentage points from the previous quarter to 41.1%.
Among the provinces, the Eastern Cape recorded the largest number of job losses, while KwaZulu-Natal recorded the largest increase.
With the SA Budget due to be tabled on Wednesday, the government is already under pressure to reduce inequalities and increase social welfare subsidies, and rising unemployment will put further strain on funding needs. Furthermore, almost half of SA's youth sit without a job.
“Young people remain in a vulnerable position in the labor market,” Statistics SA said. According to the results for the fourth quarter of 2023, the total number of unemployed young people increased by 87,000 to 4.7 million, but the number of employed young people decreased by 97,000. The total number of people was 5.9 million. As a result, the youth unemployment rate increased by 0.9 points to 44.3%.