Govt Welcomes Marginal Employment Growth and GDP Expansion in South Africa

The GCIS emphasized that this growth reflects the government's commitment to collaborating with social partners to stabilize the economy, noting that the "prudent economic path pursued to turn around our economy is starting to show improvement."

The South African government has expressed optimism over the recent marginal employment growth and the expansion of the country's real Gross Domestic Product (GDP) during the second quarter of 2024.

Positive Economic Indicators

Acting Director-General of the Government Communication and Information System (GCIS), Nomonde Mnukwa, praised these developments, stating, “The growth bears testament to the government’s commitment made during the State of the Nation Address in February to ensure positive economic growth that will encourage business development and provide more employment opportunities.”

Employment Statistics

According to the latest Quarterly Employment Statistics survey released by Statistics South Africa (Stats SA), the formal non-agricultural sector witnessed an increase of 42,000 jobs in the second quarter, raising total employment to 10.7 million. Despite a loss of 144,000 jobs between June 2023 and June 2024, the total number of employees still grew by 0.4%, with figures climbing from 10.67 million in March 2024 to 10.72 million by June 2024.

Structural Reforms and Business Environment

Mnukwa highlighted that these positive trends indicate the effectiveness of the government’s structural reforms aimed at removing bottlenecks and red tape, ultimately driving inclusive growth and job creation. “South Africa’s business-friendly approach paves a positive sentiment, signalling that South Africa is becoming more and more of an investment destination,” she added.

The GCIS emphasized that this growth reflects the government's commitment to collaborating with social partners to stabilize the economy, noting that the "prudent economic path pursued to turn around our economy is starting to show improvement."

Future Outlook

Looking ahead, government officials remain optimistic that continued structural reforms and a focus on creating a conducive environment for business development will further stimulate job creation and economic growth. The government plans to sustain these efforts while engaging with stakeholders to ensure that the economic recovery is inclusive and beneficial to all South Africans.