South Africa’s official unemployment rate fell slightly in the fourth quarter of last year, helped by job gains in the finance and manufacturing sectors.
The second quarterly decline in a row took unemployment to 31.9% in October-December from 32.1% in July-September, data from Statistics South Africa showed.
South Africa’s coalition government, formed last year after the African National Congress lost its parliamentary majority, has made job creation one of its priorities.
But it will take time to gauge its success at lowering one of the highest unemployment rates in the world.
Reflecting the scale of the problem, an expanded unemployment rate, which includes those discouraged from seeking work, remained unchanged at 41.9% in the final three months of 2024.
“Despite some positive movement in job creation, the large gap between official and expanded unemployment rates suggests persistent structural challenges,” Shaun Murison, senior market analyst at IG, said in a research note.
Black women continue to be the most vulnerable to unemployment, and joblessness among the youth is also a big problem.
On Wednesday Finance Minister Enoch Godongwana will present this year’s national budget, laying out the government’s spending priorities, revenue collection measures and updated economic forecasts.
(Reporting by Kopano Gumbi in Pretoria and Sfundo Parakozov in Johannesburg;Additional reporting by Bhargav Acharya;Editing by Alexander Winning and Angus MacSwan)
