Statistics South Africa (Stats SA) has reported that the official unemployment rate stood at 32.9% for the first quarter of this year, compared with 31.9% for the fourth quarter of 2024, while the expanded unemployment rate worsened by 1.2 percentage points quarter-on-quarter to 43.1%.

“The one percentage point rise in the first-quarter unemployment level again raises another red flag about South Africa’s weak growth performance. With GDP growth forecasts for 2025 having been progressively reduced by various institutions and economists to about 1.5% and below, it is not unexpected that this should now be reflected in higher unemployment levels.

“The overall total unemployment level is now where it was a year ago and youth unemployment in particular remains at an unacceptable magnitude. The latest rise in unemployment again confirms that economic growth in South Africa has been too low for too long,” North-West University (NWU) Business School's Professor Raymond Parsons said on May 13.

The Stats SA data revealed a 291 000 decrease in the number of employed people in South Africa to 16.8-million, while the number of unemployed individuals increased by 237 000, rising to 8.2-million over the same period. These changes led to an overall decrease in the labour force by 54 000.

The number of discouraged work-seekers increased by 7 000.

Employment in the formal sector declined by 245 000 jobs during the first quarter, while the informal sector recorded an increase of 17 000 jobs. Industry-specific employment changes included increases in the transport sector by 67 000, finance by 60 000 and utilities by 35 000.

However, job losses were recorded in trade, which declined by 194 000, construction by 119 000, private households by 68 000, community and social services by 45 000 and mining by 35 000.

Provincial employment figures showed gains in the Western Cape with an increase of 49 000 jobs, Gauteng with 9 000 and the Free State with 4 000.

In contrast, employment declined in KwaZulu-Natal by 104 000, the Eastern Cape by 83 000, North West by 57 000, Limpopo by 55 000, Mpumalanga by 43 000 and the Northern Cape by 12 000.

Youth aged between 15 and 34 years continued to face significant challenges in the labour market. The number of unemployed youth increased by 151 000, reaching a total of 4.8-million, while employed youth declined by 153 000 to 5.7-million. As a result, the youth unemployment rate rose from 44.6% in the fourth quarter of 2024 to 46.1% in the first quarter of this year.

“There is no magic wand to create jobs overnight, as the disappointing unemployment picture is the cumulative outcome of seasonal, cyclical and structural factors. But the deteriorating employment outlook nonetheless again reinforces the fact that the third Budget on May 21 must be a growth-driven one.”

“It needs to create a policy environment which promotes economic expansion and boosts investor confidence. The Budget must be dedicated to policies and projects that demonstrably support the Government of National Unity’s commitment to at least 3% GDP job-rich growth in the medium term,” Parsons said.