By Lehlohonolo Lehana.
The Unemployment in South Africa increased by 0.2 of a percentage point in the fourth quarter of 2023 from 31.9% in the third quarter to 32.1%.
Addressing a media briefing on Tuesday in Pretoria, Statistician-General Risenga Maluleke said the number of unemployed persons increased by 46 000 to 7.9 million compared to quarter three.
StatsSA’s data shows that the largest employment losses were in the community and social services sector, which shed 171 000 jobs in the fourth quarter. There were also job losses in construction, agriculture, trade and manufacturing.
The data also shows that in the last decade, the number of unemployed people in South Africa increased from 4.8 million to 7.9 million, signalling the country’s economic malaise during the period.
South Africa’s job crisis deepened in the wake of the Covid-19 pandemic, which resulted in more than two million people losing their jobs in the second quarter of 2020.
Although there are now about 300 000 more employed people than there were prior to the Covid-induced decline, this slight recovery took more than three years. Total employment was unchanged between the third and the fourth quarters of 2023.
The unemployment data comes the day before Finance Minister Enoch Godongwana is set to table the treasury’s budget for the coming fiscal year.
Analysts agree that the budget will probably see the treasury administering fiscal consolidation to stabilise the country’s public finances — an outcome which would hamstring the economy and ambitions to bring down the ultra-high unemployment rate.
“The youth remain vulnerable in the labour market,” Maluleke said. The fourth quarter of 2023 results show that the total number of unemployed youth increased by 87 000 to 4.7 million while there was a decrease of 97 000 in the number of employed youth to 5.9 million. This resulted in an increase in the youth unemployment rate by 0.9 of a percentage point to 44.3%, He said.
Meanwhile, Action SA’s Herman Mashaba’s described the latest employment figures as disastrous.
“South Africa’s current unemployment and fiscal crisis is a manmade disaster by the ruling party after years of mismanagement and corruption,” said Mashaba.
The news is a blow to the ruling African National Congress party as it faces its steepest election test ever in a few months. The desperately high unemployment rate is a key voter issue.