SA's unemployment rate nears 33%, but does that reflect complete picture?
The official unemployment rate has jumped to 32.9%, according to Stats SA's figures for the first quarter of 2024.
unemployment, jobs, men on side of road Zwelihle, Hermanus, 123rf.com
Bruce Whitfield interviews Isaah Mhlanga, chief economist at RMB.
South Africa's official unemployment rate jumped in the first quarter of 2024, to 32,9%.
That's an increase of 0,8 of a percentage point from 32,1% in the fourth quarter of 2023.
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The number of unemployed persons increased by 330 000 to 8,2 million, according to Statistics SA's latest Quarterly Labour Force Survey, or QLFS. (Click here for the key findings)
In terms of the expanded definition, the unemployment rate also increased by 0,8 of a percentage point to 41,9% in Q1: 2024.
While these numbers do reflect a crisis of epic proportions remarks Bruce Whitfield, do they show us the complete picture?
He interviews Isaah Mhlanga, chief economist at RMB.
Mhlanga says it's important to contextualise the latest rise in the unemployment rate.
From the last quarter of 2023 into the first quarter of this year, we actually had 22 000 more people employed in the economy, he notes.
"And if we look relative to last year's first quarter, we have 552 000 more people in the economy."
Isaah Mhlanga, Chief Economist - RMB
The simple reason that we're seeing the jobless rate increase, is because there are more people coming into the labour market, not all of whom find work.
This pattern is likely to continue as we remain an economy that grows at a slower pace than the population does.
"This is why we always say we need to see a rate of economic growth that exceeds population growth - with that we'll ensure that all people looking for jobs entering the labour market will be able to be absorbed into employment opportunities."
Isaah Mhlanga, Chief Economist - RMB
Mhlanga also refers to a different dynamic we don't often look at in the unemployment numbers, which is the occupations where jobs are being lost.
"It's your managers, it's your professionals, your sales and services, and then some elementary and domestic workers. The trend that you see there, these are skills that are easily replaceable over time."
Isaah Mhlanga, Chief Economist - RMB
Scroll up to listen to Mhlanga's analysis