Unemployment increases, almost 5 million youth jobless

The official unemployment rate increased slightly in the first quarter of 2023 by 0.2% to 32.9% after ending 2022 on 32.7%, while youth unemployment increased by 1.1% to 46.5%. The total number of unemployed youths increased by 241 000 to 4.9 million and the number of employed youths by 28 000 to 5.6 million.

According to Statistic SA’s quarterly labour force survey, the number of employed people increased by 258 000 to 16.2 million in the first quarter compared to the fourth quarter of 2022. The number of unemployed people declined by 179 000 to 7.9 million during the same quarter, while the number of people who were not economically active for reasons other than discouragement decreased by 209 000 to 13.2 million.

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. These changes in employment and unemployment resulted in the official unemployment rate increasing.

The official definition describes unemployed people as those between the ages of 15 and 64 who were not employed in the reference week, actively looked for work or tried to start a business in the four weeks preceding the survey interview, were available for work, did not actively look for work in the past four weeks, but had a job or business to start at a definite date in the future and were available.

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The expanded definition describes unemployed people as those who were not employed in the reference week, were available to work but did not look for work either because they are discouraged from looking for work or did not look for work for other reasons other than discouragement. 

The unemployment rate according to the expanded definition decreased by 0.2 of a percentage point to 42.4%, compared to the fourth quarter. The formal sector recorded an increase in employment of 209 000, while employment in the informal sector increased by 107 000.

The largest employment gains were found in finance (184 000), community and social services (175 000) and agriculture (27 000), while private households shed 85 000 jobs, trade 28 000, mining 24 000, construction11 000 and manufacturing (2 000). 

Gauteng added another 80 000, Limpopo 71 000, the Western Cape 62 000, KwaZulu-Natal 54 000 and Eastern Cape 41 000, while Mpumalanga shed 45 000 jobs, North West 4 000 and Free State 4 000 as well.

The survey is a household-based sample survey that collects data on the labour market activities of individuals older between the ages of 15 and 64.