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South Africa’s official unemployment rate increased to 32.9% in the first quarter of the year from 31.9% in the last quarter of 2024.
The number of employed people decreased by 291 000 to 16.8 million quarter-on-quarter, while the number of people without jobs increased by 237 000 to 8.2 million, Statistics South Africa said on Tuesday.
Jobs in the formal sector fell by 245 000, and losses were also recorded in trade (194 000), construction (119 000), private households (68 000) and community and social services.
Employment however increased by 17 000 in the informal sector. Jobs were also added in transport (67 000), finance (60 000) and utilities (35 000), Stats SA said.
The increase in the unemployment rate shows that South Africa “continues to grapple with a relentless rise in unemployment, casting a shadow over the country’s recovery efforts”, Casey Sprake, an economist at Anchor Capital, said in a statement.
“While recent key reform measures point to a more positive trajectory, this progress has not yet trickled down to many South Africans in the form of job opportunities,” she said.
“Structural challenges, such as a skills gap, labour market rigidities, and the lingering impact of the Covid-19 pandemic, have exacerbated unemployment rates, especially among the youth.”
Young people aged 15 to 34 years remain particularly vulnerable in the labour market, the statistics agency said.
The number of unemployed youth increased by 151 000, while that of young people with jobs fell by 153 000. This translated to the youth unemployment rate increasing to 46.1% from 44.6% previously.