The Unemployment rate of South Africa attained a value of 33.06 % in 2024
The indicator recorded a historical change (bps difference) of 123 bps between 2021 to 2024, and is expected to decline by...
GlobalData projects the figure to change by 189 bps between 2025 and 2029, reaching...
Unemployment
Unemployed people are those that are actively looking for work but are having no luck. The unemployment rate is derived by dividing the total number of unemployed people by the total population of a certain region or workforce. It is one of the most important measures of a country's economic health.
Global Unemployment
The International Labour Organization estimates that by the end of 2021, the average regional unemployment rate will be 9.6%, down from the 10.6% it reached in 2020 but up from the 8% that was noted in 2019, which is used in this case as a benchmark to determine the impact of the pandemic's first two years.
The Organization for Economic Cooperation and Development (OECD) reported that the unemployment rate in OECD regions fell below the pre-pandemic rate when its February 2022 unemployment numbers were published in April 2022. Since this data series' inception in 2001, this is its lowest point. Additionally, the OECD region's unemployment rate decreased further, dropping by 0.7 million to 34.9 million people.
Unemployment Rate of South Africa
The unemployment rate in South Africa in 2021 stood at 33.5%. Between 2018-2021, the unemployment rate in South Africa was highest in 2021 at 33.5% and lowest in 2018 at 27.1%. The unemployment rate decreased by 14.8% on a year-on-year basis in 2021 and increased by 23.6% between 2018-2021.
The COVID-19 pandemic has reduced employment opportunities across the country. In 2021Q1, the unemployment rate stood at 32.6%, which is a marginal rise compared to the previous quarter. The regions of Eastern Cape, Free State, Gauteng, and Mpumalanga had the highest levels of unemployment during 2021Q1.
The economic crisis unleashed by COVID-19 has undone several years of social development in South Africa. Youth employment was dealt a heavy blow during the time. In the first quarter of 2021, the unemployment rate among the 15-34 years of age group stood at 46.3%. The burden of unemployment is also concentrated amongst the youth population, which accounts for 59.5% of the total number of unemployed persons.
South Africa remains a relatively young country, with 66% of the population in the working-age bracket in 2020. However, the large youth population is not translating into higher growth, as unemployment remains high. The lack of skills among South Africa’s youth population also remains a problem. Employment creation is a key issue if South Africa is to harness its demographic dividend.
Factors that Cause Unemployment
Some of the key factors that affect unemployment in a nation are recession, government policies, geographic labor mobility, technological breakthroughs, the global economy, growing populations, and worker education, training, and skill development.
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