South Africa’s official unemployment rate saw a marginal decline in the fourth quarter of 2024, driven by job growth in the finance and manufacturing sectors.
Data from Statistics South Africa showed unemployment fell to 31.9% in the October-December period, down from 32.1% in the previous quarter. This marks the second consecutive quarterly decline, offering a small sign of progress in the country’s ongoing employment struggles.
The coalition government, formed after the African National Congress lost its parliamentary majority last year, has prioritized job creation. However, it remains too early to assess its impact on reducing one of the world’s highest unemployment rates.
Despite the slight improvement, the broader employment crisis persists. The expanded unemployment rate, which includes discouraged job seekers, remained unchanged at 41.9%, highlighting deep-rooted structural challenges.
“While there are some positive signs in job creation, the significant gap between the official and expanded unemployment rates points to ongoing structural issues,” said Shaun Murison, senior market analyst at IG.
Black women remain the most affected demographic, while youth unemployment continues to be a major concern.
On Wednesday, Finance Minister Enoch Godongwana is set to deliver the national budget, outlining government spending priorities, revenue collection strategies, and updated economic projections.