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In a surprising turn of events, South Africa’s unemployment rate fell to 32.1% in the third quarter, a slight but significant improvement from 33.5% in the previous quarter. The country’s official statistics agency reported the change on Tuesday, offering a rare piece of good news in an otherwise challenging economic ecosystem.
For years, Africa’s most industrialized economy has grappled with soaring unemployment levels, a challenge that has disproportionately impacted women and youth. Despite its economic size, the country continues to face significant hurdles in tackling joblessness.
Statistics South Africa’s Quarterly Labour Force Survey revealed a welcome change this quarter, with employment increasing by 294,000. At the same time, the number of unemployed individuals decreased by 373,000, offering a rare sign of improvement in the nation’s job market.
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The surge in employment was largely fueled by gains in community and social services, along with sectors like construction, trade, mining, and transport. These industries played a pivotal role in bolstering job creation during the quarter.
This marks the first decrease in joblessness since the third quarter of 2023, when the country’s unemployment rate stood at 31.9 per cent.
Youth unemployment remains particularly high, although it decreased from 46.6 per cent in the second quarter of 2024 to 45.5 per cent in the third quarter.
South Africa’s economy faces structural challenges and weak growth, according to the World Bank. This limits the government’s ability to address inequality—among the highest in the world—and poverty, which affects more than 60 per cent of the population.
