According to BL Premium, South Africa’s economy is not generating jobs quickly enough to accommodate the influx of new job seekers, resulting in a record 8.38 million people unable to find employment.
Even though the labor market has shown some recovery following the effects of Covid-19, the economy has not kept up with population growth over a prolonged period, as noted by Stanlib’s chief economist, Kevin Lings. Statistics South Africa (Stats SA) revealed in its Quarterly Labour Force Survey (QLFS) on Tuesday that the number of employed people decreased by 92,000 to 16.7 million in the second quarter. The unemployment rate rose to 33.5% in the three months leading up to June, up from 32.9% in the previous quarter, marking the highest level since 2022. Under the expanded definition of unemployment, which includes those who have stopped looking for work, the rate increased by 0.7 percentage points to 42.6% in the second quarter. The highest unemployment rates were observed among people aged 15-24 years and 25-34 years, at 60.8% and 41.7%, respectively. The trade sector experienced the most significant job losses, shedding 111,000 jobs during the quarter. This was followed by losses of 45,000 jobs in agriculture, 18,000 in private households, 11,000 in construction, and 9,000 in finance. However, the manufacturing sector saw an increase of 49,000 jobs. The Western Cape, Mpumalanga, and KwaZulu-Natal recorded the largest decreases in employment, while Gauteng experienced the most significant job growth.
For the full original report by Denene Erasmus, visit BusinessLive (subscription required).
