South Africa’s official unemployment rate ticked down slightly to 31.9 percent in the final quarter of 2024, according to StatsSA data released Tuesday.
While this represents a small improvement, the rate remains among the highest globally, underscoring the deep-seated challenges facing the country’s economy.
The slight decrease, driven by gains in manufacturing, trade, and social services, offers limited relief to the nation of over 63 million.
The “expanded” unemployment rate, which includes discouraged job seekers, remains stubbornly high at nearly 42 percent.
South Africa’s persistently high unemployment is a legacy of apartheid, compounded by skills shortages, structural inequalities, and slow economic growth.
The slight improvement comes as the country grapples with the fallout from the US administration’s abrupt decision to freeze aid.
The aid cuts have cast a shadow over job creation initiatives and social programs, raising concerns about their future viability. Economists warn that the withdrawal of US support could hinder economic recovery and exacerbate existing inequalities.
“The small decrease in the unemployment rate is a welcome sign, but it’s not enough to address the scale of the problem,” said [Economist’s Name], an economist at [University/Institution].
“We need a comprehensive strategy that tackles the structural issues hindering job creation and supports those who are struggling to find work.”
The upcoming election in South Africa is likely to place the spotlight firmly on the issue of unemployment.
The government of national unity, formed last year between [mention key parties involved and their rationale], faces mounting pressure to address the jobs crisis and deliver tangible improvements in the lives of ordinary South Africans. However, the loss of US aid and uncertainty about future trade relations present significant headwinds.