Thousands of Jobs Lost as South Africa’s Unemployment Rate Returns to 32.9%

South Africa’s unemployment rate has climbed back to where it stood a year ago — 32.9% — following the loss of 291,000 jobs in the first quarter of 2025, according to new data released by Statistics South Africa on Tuesday.

This setback comes after moderate job gains between March and December 2024, highlighting persistent structural challenges in the economy. The total number of employed South Africans has dropped to 16.8 million, while 8.2 million people are now unemployed, excluding discouraged work seekers.

Although the figure remains below the record high of 35.3% in late 2021, it’s a stark contrast to the country’s best showing of 21.5% in 2008, according to Trading Economics.

Youth Unemployment Worsens

Young South Africans continue to bear the brunt of the crisis. Stats SA notes that the unemployment rate for individuals aged 15 to 34 rose sharply from 44.6% to 46.1% quarter-on-quarter. This demographic remains the most vulnerable, facing a combination of job losses and an influx of new entrants into the workforce.

“The rise in youth unemployment points to deeper structural barriers in our economy, where young people struggle to gain entry into the job market,” said an analyst familiar with the report. *digitis | Digital marketing for your business

At the same time, there has been a 1.3 percentage point increase in the number of people entering the workforce, representing 532,000 more working-age individuals. However, job creation has not kept pace, pushing unemployment higher.

Informal Sector Holds, But Formal Sector Falters

Job losses were concentrated in the formal sector, with industries such as trade and construction accounting for the bulk of the decline. In contrast, sectors like transport and finance managed to record net job gains, offering some relief.

Regionally, employment grew in the Western Cape, Gauteng, and the Free State, but declined in KwaZulu-Natal, Eastern Cape, and the North West.

Meanwhile, the expanded unemployment rate, which includes discouraged work seekers, rose from 41.9% to 43.1%.

A Broader Economic Challenge

The increase in joblessness coincides with persistent issues such as slow GDP growth, limited private investment, and unreliable power supply, all of which continue to dampen business confidence and hiring.

“With rising living costs and fewer job prospects, South Africans — particularly the youth — are under immense pressure,” said an economist from a Johannesburg-based think tank.

While some provinces and sectors are showing resilience, the overall picture remains fragile. Economists warn that without meaningful economic reforms and support for small businesses, reversing the trend will remain an uphill battle.

South Africa’s latest unemployment figures are a sobering reminder that job creation remains one of the country’s biggest challenges. The return to 32.9% unemployment highlights the need for urgent policy attention, particularly toward youth employment and sectoral development.

{Source: IOL}

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