Statistician-general Risenga Maluleke has announced that South Africa recorded a rise in unemployment to 33.7% amid economic strain. 

According to The Witness, the official unemployment rate rose from 33.6% and 32.7% in the second and first quarters, respectively. 

That 0.1% increase represents 97 000 more people who are unemployed, Maluleke said. 

Quarterly findings 

Speaking during the release of the Quarterly Labour Force Survey for the third quarter, he said the total number of unemployed people is 8.6 million, while the number of those who are employed is 16.8 million. 

The informal sector shed 98 000 jobs, while private households recorded a loss of 68 000. Further employment declines were recorded in agriculture (34 000) and construction (8 000). 

While the formal sector increased by 268 000 jobs, industries that recorded the highest employment gains were finance (111 000), manufacturing (33 000) and mining (31 000). 

Looking at the provinces, Maluleke noted the Eastern Cape consistently led in unemployment, remaining above the national average at 44.3%

He did, however, note that the province was making gains by dropping from 47.5% in the previous quarter. 

Other provinces above the national average included the Free State, the North West, Mpumalanga and Gauteng. 

The unemployment rates in the country’s three most populous provinces are 35.7% in Gauteng, 33.3% in KZN and 19.4% in the Western Cape, a slight decline from the previous year’s figure of 19.5%. 

Demographic disparities 

Meanwhile, youth unemployment continues to be a concern, as people aged between 15 and 24 and between 25 and 34 recorded the highest unemployment rates at 63.6% and 41.4%, respectively. 

Young people aged 15 to 34 proved to be more vulnerable to unemployment than older age groups, with their unemployment rate increasing by 9.1 percentage points over the past decade. 

In a statement, Youth Capital said 417 000 fewer young people were working than a year ago.  

“This is not simply a story of young people struggling to enter the labour market, it is a failure to absorb young people into work.” 

It added that young people at different stages of life face the same fundamental problem: There are simply too few pathways into work and earning. 

It is calling for predictable, multi-year funding for public employment, with at least one million quality, paid opportunities for young people annually. 

Another group that is acutely affected by unemployment is the black African population, Maluleke said. 

The unemployment rate among black Africans, at 37.5%, was higher than the national average and that of other population groups, he said. 

He added that black African women were the most vulnerable, with an unemployment rate of 41.4% – 4.1 percentage points higher than the national average for women at 37.3%. 

Responding to questions from the media on what could be the driving force behind the industries that cut jobs, Maluleke acknowledged the strain businesses and households are under due to rising costs, including fuel, but stressed that more research was needed to definitively establish why those sectors cut jobs. 

Regional trends 

Mossel Bay Advertiser reported that the Western Cape not only maintained the country’s leading position in unemployment but also in labour absorption and labour force participation rates. 

Seven out of 10 economic sectors recorded employment gains, with construction leading the increases. The sector added a net 33 000 jobs compared with the same period last year. 

Agriculture contributed a further 26 000 jobs, while the finance and services sectors recorded a combined net increase of 25 000.  

Premier Alan Winde said the province needed to continue creating opportunities for residents to enter the economy and move out of poverty. 

He said the latest figures reflected progress towards building a resilient and inclusive economy, although significant challenges remained.  

Western Cape Minister of Agriculture, Economic Development and Tourism Dr Ivan Meyer said investment in sectors such as agriculture, trade, tourism, manufacturing and infrastructure was contributing to employment growth. 

He added that the provincial government’s focus remained on creating more jobs, expanding opportunities for entrepreneurs and ensuring that economic growth reached communities across the province. 

Breaking news at your fingertips… Follow Caxton Network News on Facebook and join our WhatsApp channel.

Nuus wat saakmaak. Volg Caxton Netwerk-nuus op Facebook en sluit aan by ons WhatsApp-kanaal.