Understanding the Latest Labour Force Survey
Statistics South Africa released its latest Quarterly Labour Force Survey on Tuesday, November 10. According to the report, the official unemployment rate increased from 33.6% in the second quarter to 33.7% between July and September.
The number of unemployed people increased by 97,000 to approximately 8.6 million. Meanwhile, the number of employed people also rose by 101,000 to reach 16.8 million.
Despite this increase in employment, the total labour force grew by 198,000 during the quarter. Therefore, the number of people entering or actively participating in the job market grew much faster than actual employment. As a result, this dynamic contributed directly to the rising unemployment figures.
The Severe Impact on Youth Employment
The survey also highlighted the massive challenges facing young people in the labour market. Specifically, approximately five million people between the ages of 15 and 34 were unemployed during the third quarter.
The youth unemployment rate decreased slightly by 0.1 percentage points to 47.3%. However, this did not mean more young people had actually found work. In fact, the number of employed young people declined by 5,000 to 5.5 million. At the same time, the number of unemployed young people decreased by 23,000.
Discouraged Job Seekers and Sector Changes
Another concerning finding was the sharp increase in discouraged job seekers. Their numbers rose by 70,000 to reach a total of 3.7 million.
These are people who are available for work but have stopped actively searching for employment. Often, they give up because they believe the market offers limited opportunities.
The survey further revealed that employment growth was extremely uneven across different sectors. For instance, formal sector employment increased by 268,000 to 12.3 million. Conversely, the informal sector recorded a severe decline of 98,000 jobs. Additionally, employment in private households decreased by 68,000.
What This Means for the Future
The latest figures highlight the ongoing difficulties facing the national labour market. An increase in employment has simply not been enough to prevent the overall South Africa unemployment rate from rising.
For millions of citizens, finding employment remains a significant challenge. Ultimately, this reality hits young people trying to enter the workforce the hardest.
Prepared by Sibongile Nyamo