South Africa’s unemployment rate has increased for the second straight quarter, posing a major challenge for the coalition government that came to power after the 2024 elections. Official data released on Tuesday shows the rate rose to 33.2 percent between April and June, up from 32.9 percent in the first quarter. This remains one of the highest unemployment rates globally.
Why Is South Africa’s Jobless Rate Rising?
Statistics South Africa reported that the number of unemployed people grew to 8.367 million in the second quarter. Six of the ten industries tracked recorded job losses, with the largest declines in community and social services, agriculture, and finance. Four industries showed modest growth.
The coalition government, formed after the African National Congress lost its parliamentary majority, had prioritized reducing unemployment. Yet, the latest figures show little progress, raising concerns about the government’s ability to turn the trend around.
Could External Pressures Be Affecting Jobs?
Statistician-General Risenga Maluleke said it was too soon to know whether recent U.S. tariffs on South African exports were affecting jobs. The U.S. imposed a 30 percent tariff last week, the highest in sub-Saharan Africa.
Maluleke also rejected claims by a former Capitec Bank executive that Statistics SA was undercounting informal jobs. He responded firmly: “We would be making a big mistake as a country if we want to assume that we do not have an unemployment challenge.”
What Changes Are Coming in Labour Data?
Chief Director of Labour Statistics Desiree Manamela said updates to unemployment data collection will roll out in the next quarter. While the changes are not expected to significantly shift the official rate, they will include new measures to better capture the state of the economy.
By Yockshard Enyendi