South Africa’s unemployment rate declined in the three months following the formation of a coalition government, sparking renewed optimism about the country’s economic outlook. Official data released on Tuesday revealed that the unemployment rate dropped to 32.1% in the third quarter of 2024, down from 33.5% in the previous quarter—marking the first decrease in a year, according to Statistics South Africa.
The coalition government, formed in June after the African National Congress (ANC) lost its parliamentary majority for the first time in three decades, brought together market-friendly parties like the Democratic Alliance along with smaller parties. This shift has helped boost business confidence, leading to a rally in the rand currency and local debt.
Job creation was seen across six of the 10 sectors monitored by Statistics South Africa, including community and social services, construction, trade, agriculture, mining, and utilities. However, job losses were recorded in sectors such as transport, manufacturing, private households, and finance.
Despite the positive trend, South Africa still grapples with one of the highest unemployment rates in the world. Black South Africans, in particular, face the highest unemployment levels compared to other racial groups in the country.
Statistician-General Risenga Maluleke highlighted that long-term unemployment has surged by more than 10 percentage points in the past decade, largely due to a skills mismatch between job seekers and available positions. Under a broader definition that includes those who have given up searching for work, the unemployment rate stood at 41.9% in the third quarter, a slight improvement from 42.6% in the previous quarter.
