South Africa’s official unemployment rate fell to 32.1% in the third quarter of 2024, down from 33.5% in the previous quarter, marking the first decline in a year, according to data released by Statistics South Africa on Tuesday.
This positive shift follows the formation of a coalition government in June, after the African National Congress (ANC) lost its parliamentary majority for the first time in 30 years. The ANC’s alliance with the pro-business Democratic Alliance and smaller parties has bolstered business confidence, sparking hopes for economic reform.
Investor sentiment improved significantly, leading to a rally in the rand currency and gains in local-currency debt. Employment growth was recorded in six of the 10 industries monitored: community and social services, construction, trade, agriculture, mining, and utilities. However, job losses were seen in transport, manufacturing, private households, and finance.
Despite this progress, South Africa still grapples with one of the highest unemployment rates globally. Black South Africans remain disproportionately affected, experiencing the highest joblessness rates among the country’s racial groups.
Statistician-General Risenga Maluleke noted during a press conference that long-term unemployment has risen by over 10 percentage points in the past decade, driven by a mismatch between available skills and job opportunities. The expanded definition of unemployment, which includes those who have stopped looking for work, showed a decrease to 41.9% in the third quarter, down from 42.6% in the second.