South Africa’s Unemployment Rate Climbs in Q1 2024
PRETORIA, SOUTH AFRICA – NOVEMBER 06: Unemployed graduates from Kwa-Zulu Natal and Pretoria march to the Union Buildings on November 06, 2018 in Pretoria, South Africa. The graduates, some wearing their graduation regalia possess qualifications ranging from economics degrees, fine arts diplomas and teaching diplomas handed over a memorandum to officials demanding government to come up with solutions to tackle the rising unemployment rate. (Photo by Gallo Images / Phill Magakoe)
Image Source: BizNews
Published by: Everything ZA News
South Africa’s unemployment crisis deepened in the first quarter of 2024, with Statistics South Africa (Stats SA) reporting a rise in the official unemployment rate to 32.9%. This marks an increase of 0.8 percentage points compared to the fourth quarter of 2023.
The data, released just ahead of the country’s national elections on May 29th, paints a concerning picture of the South African labor market. While the number of employed persons did see a slight increase of 22,000, this was overshadowed by a surge of 330,000 unemployed individuals, bringing the total to a staggering 8.2 million.
Stats SA highlighted job losses in the community and social services sector as a major contributor to the overall unemployment rise. This sector shed 122,000 jobs in Q1, raising concerns about the impact on essential services.
The situation is particularly dire for young South Africans. The unemployment rate for those aged 15-24 who are actively seeking work reached a staggering 59.7% in Q1. This means that only four out of every ten young job seekers were able to find employment.
The incoming government will face significant pressure to address these challenges and create a more conducive environment for job creation. Potential solutions could include:
- Investing in infrastructure development
- Encouraging private sector investment
- Improving education and training programs to equip young people with relevant skills
- Addressing the energy crisis
With elections looming, South Africans are likely to focus heavily on the issue of unemployment when casting their ballots. The upcoming government will need to prioritize policies that stimulate economic growth, create jobs, and offer hope to the millions currently out of work.
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