South Africa’s official unemployment rate recorded a slight drop in the final quarter of 2024, driven by job growth in the finance and manufacturing sectors, according to new data from Statistics South Africa.
The unemployment rate fell to 31.9% between October and December, down from 32.1% in the previous quarter, marking the second consecutive decline.
The coalition government, established after the African National Congress lost its parliamentary majority, has prioritized job creation. However, experts caution that addressing the country’s persistently high unemployment rate will require sustained efforts over time.
Structural Challenges Persist
Despite the improvement, the broader unemployment rate—which includes those who have stopped searching for work—remained at 41.9% in the last quarter of the year, highlighting ongoing structural issues in the labor market.
“While job creation is moving in a positive direction, the significant gap between official and expanded unemployment rates points to deeper economic challenges,” noted Shaun Murison, senior market analyst at IG.
Youth unemployment and joblessness among Black women remain particularly pressing concerns.
As the country navigates its employment crisis, Finance Minister Enoch Godongwana is set to present the national budget on Wednesday. His address will outline government spending priorities, revenue strategies, and updated economic projections, which could have implications for future job market trends.