‘Only 4 in 10 people of working age have a job’
South Africa’s unemployment rate is worse than you may realise, according to a recent survey released by the IRR.
Less than half the South Africans of working age have a job, according to a 2017 South Africa Survey based on Stats SA data and published by the South African Institute of Race Relations (IRR).
According to Gabriela Mackay, IRR employment analyst, “Just 43,3 per cent of South Africans of working age are employed. The figure is lowest for black South Africans, who demonstrate a labour market absorption rate of just 40,4 per cent. These figures are low, especially when compared to many similar economies.
“The labour market absorption rate measures the proportion of people of working age who are employed. It is an excellent gauge to draw comparisons of the health of labour markets across and within economies.”
The IRR has found that South Africa’s absorption rate depends largely on a person’s level of education. For example, the absorption rate for people with a tertiary education is 75,6 per cent, while that for people with matric as their highest level of education is 50,3 per cent.
Using Stats SA datathe IRR’s South Africa Survey found:
• The number of unemployed people (according to the expanded definition) has increased from 3,7 million in 1994 to 9,3 million in 2017;
• Of the 9,3 million unemployed people, 6 million are under the age of 35 and young people show far higher rates of unemployment than older people;
• Of the 9,3 million unemployed people, 8,3 million are black and the unemployment rate for black people is between 4 and 5 times higher than that of white people – again a reflection of differing skills profiles.
According to Gabriela, “We estimate that reducing South Africa’s unemployment to international norms will require doubling the number of people with a job over the next decade. That will require sustainable growth rates significantly in excess of 6 per cent of GDP.
“At the current rate of economic growth, there will be limited job creation – and quite possibly, job shedding across several industries. This will worsen the unemployment crisis and the political tensions that flow from South Africa’s high unemployment rate.”
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