South Africa’s unemployment rate dipped to 32.1% in the third quarter of 2024, down from 33.5% in the preceding quarter. This shift is a welcome respite, but the landscape remains complex.
A Closer Look at the Numbers
Statistics South Africa’s Quarterly Labour Force Survey reveals contrasting trends. While employment gains were recorded in the formal, informal, and agricultural sectors, the number of discouraged work-seekers swelled by 160,000. Additionally, 54,000 more individuals became economically inactive for reasons other than discouragement.
Growth in Informal Sector Employment
The informal sector led the charge in job creation, adding 165,000 positions. In contrast, the formal sector expanded by 122,000 jobs. PWC Senior Economist Xhanti Payi attributes this growth to the high unemployment rate, which has spurred entrepreneurship.
The Rise of Small Businesses
Payi notes that the informal sector’s expansion is a significant trend, driven by individuals opening small businesses or working independently. “This sector comprises small businesses, often untaxed, and individuals working on their own account,” he explains. This shift underscores the importance of self-employment and small business development.
Key Takeaways
- Unemployment rate decreases to 32.1% in Q3 2024
- Discouraged work-seekers increase by 160,000
- Informal sector employment grows by 165,000
- Formal sector adds 122,000 jobs
- Agricultural sector sees employment gains
A Resilient Economy
South Africa’s economic landscape remains dynamic, with challenges and opportunities coexisting. The growth in informal sector employment highlights the nation’s resilience and resourcefulness.
