Job losses soar: South Africa’s employment landscape in 2024

Economic headwinds have intensified job losses across multiple industries in South Africa, leaving a growing number of workers without a stable source of income.

According to the Quarterly Employment Statistics (QES) Quarter 2 of 2024 survey released by Statistics South Africa (Stats SA) 144 000 jobs were lost between June 2023 and June 2024.

Despite this, full-time employment increased by 7.48% from the 2023 Q2, which was 8 791 000, to 9 449 000 in the second quarter of 2024.

Stats SA reported that several industries experienced declines in full-time employment in the second quarter of 2024.

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Over 30 000 job losses in Q2:2024

The manufacturing industry saw a reduction of 17 000 jobs, followed by the mining and transport industries losing 7 000 jobs each.

Furthermore, the trade and business services industries decreased by 5 000 jobs, while the electricity industry reported no change for the quarter.

“Conversely, the construction industry reported an increase of 4000 jobs.

“The number of full-time jobs declined by 40 000 in June 2023 compared to June 2024,” it said.

The survey highlighted that the official unemployment rate was 33.5% in the second quarter of 2024.

Unemployment remains a challenge

The high unemployment rate remains a severe challenge in South Africa.

Economics professor Imraan Valodia said the country needs fresh thinking to shift the economy onto a more employment-intensive growth path.

“South Africa’s unemployment challenge requires some new thinking and an acknowledgement that policies that seek to deregulate the labour market are no solution,” he said.

Political analyst Sandile Swana, believed that there was no chance that the Ramaphosa-led 10-party coalition would reduce unemployment by the time the Government National Unity’s (GNU) term ended in 2029 because the South African Reserve Bank (Sarb) statistics showed that the GDP growth rate would be 1.6% in 2026.

“Ramaphosa won’t have accomplished anything when he leaves office.

“Unemployment cannot be reduced until the GDP growth rate reaches 4%,” Swana stated.

He claimed that rather than declining, the jobless rate will rise year between December 2024 and December 2026.

ALSO READ: Unemployment to rise until GDP reaches 4% – analyst

CCMA reports over 22 000 job losses

In October, the Commission for Conciliation, Mediation and Arbitration (CCMA) reported 22 554 retrenchments in the 2023/2024 financial year.

According to the Department of Employment and Labour, the following sectors recorded the highest number of job losses:

• Mining: 5153 job losses
• Manufacturing: 2125 job losses
• Telecommunications: 1680 job losses

Furthermore, it said, “Out of 38,428 employees who were likely to be retrenched, 14,887 jobs (39%) were saved through various interventions”.

The Minister of the department Nomakhosazana Meth urged companies experiencing financial challenges to participate in the scheme as soon as they notice signs of distress.

“The nature and degree of distress will be objectively measured through indicators, including but not limited to a decline in revenue,” Meth concluded.

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