The rate of unemployment in South Africa has risen to yet another historic record as 278,000 more people joined the ranks of the unemployed in the last three months of 2021.
THE UNEMPLOYMENT rate in South Africa has risen to yet another historic record as 278,000 more people joined the ranks of the unemployed in the last three months of 2021.
Statistics South Africa (StatsSA) said on Tuesday that the country’s unemployment rate increased by 0.4 of a percentage point to 35.3 percent in the fourth quarter of 2021, up from 34.9 percent the previous quarter.
This means that there are now 7.9 million people of working age who have no jobs.
Releasing the Quarterly Labour Force Survey (QLFS), statistician-general Risenga Maluleke said this was the highest unemployment rate since the start of the QLFS in 2008.
Maluleke said the unemployment rate, according to the expanded definition of unemployment, eased by 0.4 of a percentage point to 46.2 percent in the fourth quarter.
“The results of the Quarterly Labour Force Survey for the fourth quarter of 2021 show that the number of employed persons increased by 262,000 to 14.5 million, and the number of unemployed persons also increased by 278,000 to 7.9 million in the fourth quarter of 2021 compared to the third quarter of 2021,” Maluleke said.
“While the number of not economically active population decreased by 397,000 to 17. 4 million during this quarter, the number of discouraged workseekers decreased by 56,000 and the number of people who were not economically active for reasons other than discouragement decreased by 341,000 between the two quarters.”
Maluleke said most jobs were lost in the informal sector which shed 48,000 jobs while formal sector employment increased by 143,000 jobs in the same period.
The Don Consultancy Group (DCG) chief economist Chifi Mhango said speedy policy implementation and proper alignment of the government job creation initiatives were key to dealing with the challenges of rising unemployment in the economy.
“The data reveals that not only are jobs not being created in key traditional sectors of the economy, but also there is a challenge of job retention due to de-industrialisation in the South African economy as depicted in declining share of key traditional sectors’ contribution to GDP,” Mhango said.
“Job creation and retention involves active participation of both private and public sector through investment into the economy, in a conducive-environment.
“However, in our opinion, an environment of high electricity costs, unreliable electricity supply, rising logistical costs, an inefficient railway system among others, only derails job creation and retention initiatives, as it’s unsustainable to invest in such an economy.”
– BUSINESS REPORT
