South Africa’s Unemployment Rate Rises to 33.5% in Q2
South Africa’s official unemployment rate has climbed for the third consecutive quarter, reaching 33.5% in the April-June period, according to data released by Statistics South Africa on Tuesday.
This increase marks the highest unemployment level since the government lifted COVID-19 restrictions in the second quarter of 2022, although it remains below the record 35.3% seen in the final quarter of 2021.
“The creation of new jobs is not sufficient to address the ongoing unemployment crisis,” Statistician-General Risenga Maluleke stated during a media briefing.
Tackling unemployment, which remains one of the highest globally, is a top priority for the coalition government formed after the African National Congress (ANC) lost its majority in the May elections.
President Cyril Ramaphosa, in outlining the government’s five-year plan, emphasised that small businesses and the informal sector are seen as key drivers for job creation.
Sanisha Packirisamy, an economist at Momentum Investments, highlighted that post-pandemic recovery has been more pronounced in sectors requiring highly skilled workers, predominantly within services. In contrast, unskilled and semi-skilled workers have seen minimal improvement.
Packirisamy warned that significant job creation would be a slow process, with no substantial growth expected for the remainder of the year.
Under the expanded definition of unemployment, which includes those who have given up seeking work, the jobless rate rose to 42.6% in the second quarter, up from 41.9% in the previous quarter.
The number of unemployed individuals increased to 8.384 million in April-June from 8.226 million in January-March. Five out of ten industries tracked by the agency reported employment declines, with the trade and agriculture sectors experiencing the largest losses.
Solly Molayi, Acting Head of Population Statistics, noted that the hotel and restaurant industry shed 87,000 jobs in the second quarter, making it the largest contributor to rising unemployment in the trade sector.
Source: CNBC AFRICA
