South Africa's Unemployment Rate Declines

By Kopano Gumbi

PRETORIA (Reuters) – South Africa's unemployment rate fell in the three months following the formation of a coalition government that has boosted business confidence and raised hopes for economic reform, data released on Tuesday indicates.

The official unemployment rate dropped to 32.1% in Q3 2024, down from 33.5% in Q2, marking the first decline in a year, as per Statistics South Africa figures.

The coalition government was established in June after the African National Congress (ANC) lost its parliamentary majority for the first time in 30 years, leading to a partnership with the market-friendly Democratic Alliance and several smaller parties.

This coalition has sparked investor optimism, resulting in a rally of the country's rand and local-currency debt.

The decrease in joblessness during the latest three-month period was attributed to increasing employment in six out of ten monitored industries: community and social services, construction, trade, agriculture, mining, and utilities.

In contrast, job losses occurred in transport, manufacturing, private households, and finance.

Despite the decline, South Africa continues to grapple with one of the highest unemployment rates globally, with Black South Africans facing the highest unemployment levels among racial groups.

Statistician-General Risenga Maluleke noted in a press conference that the long-term unemployment rate has surged by more than 10 percentage points over the last decade due to a mismatch between skills and available job opportunities.

Using an extended definition of unemployment that includes those discouraged from seeking work, 41.9% of the labor force was classified as jobless in Q3, a drop from 42.6% in Q2.