South Africa experienced a significant rise in its expanded unemployment rate, as reported by Statistics South Africa’s latest Quarterly Labour Force Survey.
South Africa’s unemployment rate in Q1:2024
In the first quarter of 2024, South Africa experienced a notable rise in its unemployment rate.
The official unemployment rate increased by 0.8 percentage points to 32.9% from the previous quarter.
This increase was impacted by the addition of 330,000 unemployed individuals, bringing the total number of unemployed persons to 8.2 million.
Conversely, employment rose marginally by 22,000, reaching 16.7 million employed individuals.
Expanded unemployment rate increases to 41.9%
The expanded unemployment rate, which includes discouraged work-seekers and those not actively seeking employment, reached 41.9% in Q1:2024.
This represents an increase of 0.8 percentage points from the previous quarter.
The increase in the expanded unemployment rate presents a strong indicator of the challenges faced by those who have given up on actively searching for work due to prolonged joblessness or perceived lack of opportunities.
What is the difference between the official and expanded unemployment rate?
The official unemployment rate only includes individuals who are actively seeking work, while the expanded unemployment rate also counts discouraged work-seekers and those who are available to work but not actively looking for a job.
The expanded rate provides a broader picture of unemployment, capturing those who have lost hope in finding employment and those engaged in subsistence activities or informal employment not included in the official count.
This province has the highest unemployment in South Africa
In Q1:2024, the Eastern Cape recorded the highest unemployment rate in South Africa.
The official unemployment rate in the Eastern Cape was 42.4%, and the expanded unemployment rate was 49.1%.
These figures showcase the severe joblessness in the province, where nearly half of the labour force is either unemployed or not actively seeking work.
What does the unemployment rate suggest about South Africa?
The rise in both the official and expanded unemployment rates suggests ongoing difficulties in South Africa’s labour market.
High unemployment rates indicate a need for effective job creation strategies and policies to address the economic challenges.
The disparities between provinces also suggest that targeted regional interventions may be necessary to address the unique employment issues in areas like the Eastern Cape.
High unemployment rates can have significant social and economic impacts, including increased poverty, reduced consumer spending, and greater social unrest.
