SA unemployment down slightly, 45.3% of youth without jobs

The official unemployment rate for South Africans decreased by 0.3 percentage points to 32.6% in the second quarter from 32.9% in in the first quarter, while the number of employed people increased by 154 000 to 16.3 million, almost at the level of 16.4 million before Covid.

According to Statistics SA’s Quarterly Labour Force Survey (QLFS), the number of unemployed people decreased by 11 000 to 7.9 million and the number of people who were not economically active for reasons other than discouragement increased by 93 000 to 13.3 million.

The discouraged work-seekers decreased by 94 000, a net decrease of 1 000 in the not economically active population compared to the first quarter. These changes in employment and unemployment resulted in the official unemployment rate decreasing by 0.3.

The unemployment rate according to the expanded definition decreased by 0.3 of a percentage point to 42.1% in the second quarter compared to the first quarter.

Employment in the formal sector increased by 143 000 in the second quarter, but informal sector employment decreased by 33 000 over the same time. The formal sector in South Africa accounts for 69.3% of total employment.

The largest employment gains were recorded for construction, that added 104 000 jobs, trade that added 92 000 and community and social services added 63 000. Employment losses were recorded in manufacturing, that lost 96 000 jobs, finance that lost 68 000 jobs, transport that lost 7 000 jobs and utilities that lost 6 000.

ALSO READ: Unemployment increases, almost 5 million youth jobless

Young people and women mostly unemployed

Young people remain the most vulnerable in the labour market, with the second quarter of 2023 results showing that the total number of unemployed youth between the ages of 15 and 34, decreased by 131 000 to 4.7 million, while there was an increase of 105 000 in the number of employed youth to 5.7 million during the same period, resulting in a decrease in the youth unemployment rate of 1.1 percentage points to 45.3% in the second quarter.

Young people between the ages of 15 and 24 recorded an unemployment rate of 60.7% and those between the ages of 25 and 34 an unemployment rate of 39.8% respectively. Approximately 3.5 million (34.2%) out of 10.2 million young people between the ages of 15 and 24 were not in employment, education or training.

The data for the second quarter also shows that women are still on the backfoot when it comes to employment, with 2 million less women employed than men. Only 54.3% of women of working age in South Africa participate in the labour force either as employed or looking for work.

The unemployment rate for women has been higher than men over the past 10 years and the female unemployment rate increased from 27.5% in the second quarter of 2013 to 35.7% in 2023. Black African women continue to be the most vulnerable with an unemployment rate of 39.8% in the second quarter, 4.1 percentage points higher than the national average for women at 35.7%.

Using the expanded unemployment definition, it is also clear that gender disparity persists throughout all population groups, with 36% of young women between the ages of 15 and 24 not in employment, education or training, a decrease of 1.2 percentage points compared to a year ago.

Women were more likely to be employed in private households and community and social services than men. While women are more likely to be employed in domestic work occupations than men, there were twice as many men (800 000) in managerial occupations than women (400 000).

The graduate unemployment rate decreased by 1.0 percentage point to 9.6% compared to 10.6%, which means that more graduates are finding employment.

ALSO READ: Investment in job-creating industries needed to curb unemployment

Unemployment in the provinces

The North West recorded the highest expanded unemployment rate at 53.5%, followed by Mpumalanga at 49.5%. Employment losses were also recorded in the Free State that lost 59 000 jobs and Northern Cape that lost 17 000 jobs.

North West, Northern Cape, Limpopo and KwaZulu-Natal recorded more than 15 percentage points difference between expanded and official unemployment rates. The expanded definition of unemployment refers to people between the ages of 15 and 64 who are without a job and willing and able to work but are not actively searching for a job. The official definition of unemployment refers to people who are out of the labour market or not economically active or available for work.

Limpopo recorded an increase of 80 000 jobs, the Western Cape 54 000 and KwaZulu-Natal 48 000.