South Africa’s unemployment rate rose to nearly a record high in the second quarter of 2024. Official data revealed that the number of unemployed people has increased by more than 60 per cent over the past decade.
The latest figures show that the unemployment rate reached 33.5 per cent between April and June, marking a 0.6 percentage point increase from the previous quarter. This is close to the record of 35.3 per cent that was reached in 2021 during the COVID-19 pandemic.
The data also highlighted that around 8.4 million people were unemployed, a significant rise from 5.2 million in 2014.
The unemployment rate, including people who have given up looking for work, reached 42.6 per cent, up from 41.9 per cent in the first quarter according to StatsSA.
While the number of people working in the formal sector decreased, informal sector employment increased by 100,000, or 3.3 per cent over the same period last year. These figures mark the first release since the elections in May, which brought in a new coalition government prioritising the task of boosting the country’s sluggish economy.
Unemployment was a major political issue in the election that led to the African National Congress losing its absolute majority in parliament for the first time in thirty years.
The challenge of finding jobs has previously sparked protests and anti-foreigner sentiment. Young people, in particular, are unhappy about the limited opportunities in what is typically seen as Africa’s most industrialised economy.
In many countries, the COVID-19 pandemic, and the Russia-Ukraine war has exacerbated stalled labour market trends. It has also changed labour market conditions. South Africa is expected to have the highest unemployment rate in the world.
As the most industrialised country on the continent, unemployment is estimated to reach 35.6% in 2025. Slow economic growth and tough labour laws have combined to discourage companies from hiring workers. Unemployment has hovered around 20% over the past two decades.