South Africa’s unemployment rate dropped by 1.4 percentage points, bringing it to 32.1% in the third quarter of 2024.
Story Summary:
- Unemployment Rate Decline: South Africa’s unemployment rate decreased to 32.1% in Q3 2024, dropping by 1.4 percentage points from Q2.
- Employment Growth: A net increase of 294,000 jobs was reported, with significant gains in the informal sector and agriculture.
- Youth NEET Rate Increase: The proportion of young people aged 15-24 not in employment, education, or training (NEET) rose to 34.2%, highlighting ongoing challenges.
South Africa official unemployment rate: Here are the key findings
This improvement follows ongoing economic changes and interventions, although disparities remain across provinces and demographic groups.
In the latest quarterly update, Statistics South Africa reported that between Q2 and Q3 2024, the number of employed South Africans increased by 294,000.
In a significant gain across several sectors, employment in the informal non-agricultural sector rose by 165,000, while jobs in agriculture increased by 39,000.
However, the private household sector saw a slight decline of 32,000 jobs.
Employment shifts across provinces
Employment shifts varied regionally.
Notable increases occurred in the Eastern Cape (83,000), Western Cape (75,000), and North West (69,000), while Gauteng and KwaZulu-Natal saw reductions of 66,000 and 2,000 jobs, respectively.
The unemployment rate decreased in seven out of nine provinces, with the North West experiencing the most significant drop, down by 4.5 percentage points to 36.8%.
Meanwhile, Limpopo recorded a slight increase in unemployment, reaching 32.6%.
Young people and education: Higher NEET rates
Statistics SA reported an increase in the number of young South Africans neither employed nor in education or training (NEET).
In the 15-24 age group, the NEET rate rose to 34.2%, with more than four in ten young people aged 15-34 disengaged from the workforce or formal training.
The NEET rate for youth overall climbed by 1.3 percentage points from the previous year, signalling a persistent challenge.
Education and unemployment trends
Educational attainment significantly impacts employment status.
Individuals with less than a matriculation certificate recorded a 37.8% unemployment rate, which was down by 1.5 percentage points from Q2.
In contrast, graduates saw a slight increase in unemployment to 9.8%.
This trend demonstrates that educational qualifications often correlate with lower unemployment rates, particularly for those holding post-secondary credentials
