In the fourth quarter of 2024, South Africa experienced a modest yet noteworthy decline in its unemployment rate, which decreased by 0.2 percentage points to 31.9%. This improvement reflects the addition of 132 000 jobs, elevating the total number of employed individuals to 17.1 million.
Despite this positive trend, challenges persist, particularly concerning high unemployment rates among Black Africans and the youth.
Trends in Unemployment Rates and Sector Performance
The reduction in the unemployment rate from 32.1% in the third quarter to 31.9% in the fourth quarter of 2024 indicates a gradual enhancement in employment opportunities. However, the expanded unemployment rate, which includes discouraged job seekers, remained unchanged at 41.9% during the same period.
Employment gains were primarily observed in the formal sector, which saw an increase of 90,000 jobs, and the informal sector, which added 34,000 jobs. The finance industry led the growth with 232 000 new positions, followed by the manufacturing sector, which added 41,000 jobs. Conversely, several industries experienced job losses: community and social services (-63,000), trade (-48,000), construction (-22,000), mining (-18,000), utilities (-17,000), and agriculture (-11,000).
Persistent High Unemployment Among Youth and Black Africans
Despite the overall decline in unemployment, young people and Black Africans continue to face disproportionately high unemployment rates. The unemployment rate among youth aged 15–24 years stands at 59.6%, while those aged 25–34 years face a rate of 39.4%. Black Africans have an unemployment rate of 35.8%, exceeding the national average. In comparison, the unemployment rates for other racial groups are: Coloured individuals at 22.3%, Indians/Asians at 14%, and Whites at 6.7%.
Black African women are particularly affected, with an unemployment rate of 38%, which is higher than the national average for women at 33.9%. Coloured women have an unemployment rate of 22.6%, Indian/Asian women at 17.6%, and White women at 7.9%.
Responses from Industry and Economic Implications
Zanele Sabela, spokesperson for the Congress of South African Trade Unions (Cosatu), acknowledged the creation of 132,000 jobs as a positive development but expressed concern over the loss of jobs in the agricultural sector. She highlighted potential threats to this sector, such as the imposition of steep tariff duties on South African exports to the United States, which could lead to further job losses.
Labour analyst and Democratic Alliance spokesperson on employment and labour, Michael Bagraim, emphasized the necessity for accelerated economic reforms to sustain job creation. He pointed out that while the slight improvement is encouraging, structural challenges in the economy persist and require bold action. Bagraim suggested that the upcoming budget speech by Finance Minister Enoch Godongwana presents an opportunity to implement reforms that could drive sustainable employment growth.
Professor Raymond Parsons from the North West University Business School echoed these sentiments, stating that although the decrease in the unemployment rate is positive, South Africa must focus on achieving its 3% GDP growth target as outlined in the Medium-Term Development Plan. He noted that significant reductions in unemployment will only result from higher GDP growth rates combined with accelerated economic reforms.
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Future Outlook: Policy and Economic Strategies
To address the ongoing unemployment crisis, economic analysts recommend that the government concentrate on key areas such as infrastructure development, financial support for small and medium enterprises (SMEs), and the expansion of public employment programs. With 12 million South Africans still unemployed, decisive action is required to create a more inclusive and sustainable job market.
While the slight reduction in the unemployment rate is a positive step, as emphasized by Cosatu and industry experts, more efforts are needed to combat youth unemployment and racial disparities in job access. The government’s ability to implement effective policies in the coming months will be crucial in determining whether South Africa can maintain and accelerate this positive momentum in employment growth.
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