SA Sees Decline in Unemployment as Economic Recovery Plan Yields Positive Results

Unemployment rate drops to 32.1% as government initiatives support job creation across key sectors.

Deputy Minister in the Presidency, Nonceba Mhlauli, has welcomed South Africa's latest employment figures, showing positive developments in the labour force. The Quarterly Labour Force Survey, released by Statistics South Africa (Stats SA) on Tuesday, reports a significant decline in the official unemployment rate, which has decreased to 32.1% in the third quarter of 2024 from 33.5% in the previous quarter.

The survey indicates that South Africa saw an increase in the number of employed individuals by 294,000, bringing the total employed population to 16.9 million. Simultaneously, the number of unemployed individuals fell by 373,000, reaching 8 million. Key job gains were observed in provinces like Eastern Cape (83,000), Western Cape (75,000), Northwest (69,000), and Mpumalanga (49,000), reflecting a more robust distribution of employment across the country.

Encouraging progress was also made in youth employment. The total number of unemployed youth, aged 15 to 34, decreased by 171,000, bringing youth unemployment down from 46.6% in the second quarter to 45.5% in the third quarter. Meanwhile, employed youth numbers rose by 66,000 to 5.8 million, highlighting a crucial area of growth.

The community and social services, construction, and trade sectors drove this employment increase, supporting the government’s ongoing efforts under the Economic Recovery and Reconstruction Plan (ERRP) and Operation Vulindlela. These programs, launched by President Cyril Ramaphosa, focus on revitalizing key industries, removing regulatory barriers, and creating a more inclusive economic environment.

“This marks a significant step forward for our economy,” said Deputy Minister Mhlauli. “The decline in the unemployment rate is a testament to the hard work and dedication of our government working with all relevant stakeholders. The Economic Recovery and Reconstruction Plan and Operation Vulindlela have been instrumental in driving economic growth and job creation. We are pleased to see these efforts yielding positive results.”

The government has highlighted its commitment to sustaining this progress, monitoring labour market trends closely, and providing continued support to Stats SA to ensure the release of reliable and timely data. Additional plans to improve youth training, skill development, and job opportunities are expected as part of ongoing initiatives to maintain momentum in employment growth.

While challenges remain, particularly with youth and long-term unemployment, the positive trend in employment figures underscores a move toward recovery and economic resilience.