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ActionSA welcomes the slight improvement in South Africa’s employment numbers but maintains that more bold measures are required to lift the country out of its unemployment crisis. According to the latest Quarterly Labour Force Survey data released by StatsSA, South Africa’s unemployment rate decreased from 33,5% in the second quarter of 2024 to 32,1% in the third quarter. 

The data shows a decrease of 1,4 percentage points in the unemployment rate to 32,1% in the second quarter of 2024. The expanded unemployment rate in the third quarter of 2024 decreased by 0,7 of a percentage point to 41,9% when compared with the second quarter of 2024. The labour force participation rate decreased by 0,4 of a percentage point to 60,2%, while the absorption rate increased by 0,6 of a percentage point to 40,9% between Q2: 2024 and Q3: 2024. 

These numbers, while showing a slight improvement compared to the previous quarter, still paint a picture of an enormous employment crisis. Compared to a year ago, the unemployment rate is 0,2 percentage points higher, while the labour force participation rate – which measures the percentage of the country’s working-age population (15-64) that is either employed or actively seeking work – has stagnated at 60,2%, the same as a year ago. This number falls far short of ActionSA’s GNU Performance Tracker labour force participation rate target of 65%, highlighting the country’s ongoing unemployment crisis. 

ActionSA welcomes the employment gains observed in the informal sector (up by 165 000), the formal sector (up by 122 000) and Agricultural sector (up by 39 000). However, the percentage of young persons aged 15–34 years who were not in employment, education or training (NEET) increased by 1,3 percentage points from 42,0% in Q3: 2023 to 43,2% in Q3: 2024, underscoring South Africa’s youth unemployment crisis. 

South Africa’s economy is simply not growing and as such is unable to create jobs. National Treasury has forecasted a growth rate of 1.1% for 2024, following only 0.4% growth in the first half of the year, with an average projection of 1.8% over the next three years. In contrast, emerging markets and developing countries are growing at 4.2% on average, while Sub-Saharan Africa is expected to grow at 3.6%. South Africa is lagging behind its peers and even many developed countries. Given our population growth rate of 1.3%, this sluggish economic growth means that unemployment is likely to get worse. 

Through our #Spaza4Locals Amendment Bill, ActionSA is advocating for stricter regulation of the township economy, with a specific focus on township and community retail outlets called Spaza, to empower South Africans economically and ensure safer, community-centered businesses. These measures aim to create thousands of jobs within the informal sector, fostering a thriving and sustainable township economy that benefits local residents directly.

Behind the horrific unemployment statistics are real stories and real lives, stories of economic hardship, despair, hopelessness, dashed dreams, and lost agency. We need bold initiatives to address unemployment figures; we simply cannot continue business as usual.

Issued by ActionSA Member of Parliament Alan Beesley