The unemployment rate in South Africa decreased somewhat in the fourth quarter

Thanks to job growth in the industrial and financial industries, South Africa’s official unemployment rate decreased little in the fourth quarter of last year.

According to Statistics South Africa statistics, unemployment dropped for the second consecutive quarter, from 32.1% in July-September to 31.9% in October-December.

The development of jobs has been a top priority for South Africa’s coalition government, which was established last year after the African National Congress lost its legislative majority.

However, assessing its effectiveness in reducing one of the world’s highest jobless rates would take time.

An extended unemployment rate, which takes into account those who are deterred from looking for work, stayed at 41.9% in the last three months of 2024, reflecting the magnitude of the issue.

Shaun Murison, senior market analyst at IG, stated in a research note that “the wide discrepancy between official and expanded unemployment rates suggests persistent structural challenges, despite some positive movement in job creation.”

Black women remain the most susceptible to unemployment, and young unemployment is a significant issue.

This year’s national budget, which outlines the government’s spending objectives, tax collection strategies, and revised economic predictions, will be presented by Finance Minister Enoch Godongwana on Wednesday.