Unemployment Rate Drops to 32.1% in Q3 2024 Amid Rise in Job Gains

The report shows a positive shift in employment figures, with the addition of 294,000 jobs, bringing total employment to 16.9 million, while the number of unemployed individuals decreased by 373,000 to 8 million.

South Africa's official unemployment rate has dropped to 32.1% in the third quarter of 2024, down from 33.5% in the previous quarter, according to the latest Quarterly Labour Force Survey (QLFS) by Statistics South Africa (Stats SA). The report shows a positive shift in employment figures, with the addition of 294,000 jobs, bringing total employment to 16.9 million, while the number of unemployed individuals decreased by 373,000 to 8 million.

However, the report also highlights a 5% increase in discouraged work-seekers, adding 160,000 to this category. The "not economically active" population—those not seeking work for reasons other than discouragement—also rose by 54,000, resulting in an overall increase of 214,000 in this group to a total of 16.5 million.

Sectoral Employment Insights

The construction sector led job gains with 176,000 new positions, contributing to its recovery and growth. Community and social services added the highest number of jobs (194,000), followed by the trade sector (109,000). However, certain sectors experienced declines: finance saw a drop of 189,000 jobs, while private households, manufacturing, and transport sectors also reported modest employment decreases.

Regional and Youth Employment Trends

Regionally, the Eastern Cape recorded the highest employment growth, adding 83,000 jobs, followed by the Western Cape with 75,000. In contrast, Gauteng and KwaZulu-Natal saw employment decreases of 66,000 and 2,000, respectively.

Youth unemployment (ages 15-34) also showed improvement, dropping from 46.6% in Q2 2024 to 45.5% in Q3. This reflects a decrease of 171,000 in unemployed youth, while youth employment grew by 66,000 to reach a total of 5.8 million employed young people.

Broader Employment Indicators

The expanded unemployment rate, which includes discouraged job seekers, also declined, moving down by 0.7 percentage points to 41.9%. This indicates a broader reduction in unemployment across both formal and informal sectors, with the formal sector adding 122,000 jobs and the informal sector seeing an increase of 165,000 positions.

Stats SA noted these figures signal progress, although the high unemployment rate remains a challenge. The report underscores the need for ongoing efforts to stimulate job creation, particularly for youth and in regions facing employment declines.