Understanding Employment Gains and Losses in South Africa

The Statistics South Africa results of the Quarterly Labour Force Survey (QLFS) released on 14 May indicate the official unemployment rate was 32,9% in the first quarter of 2024.

The results of the QLFS indicate that the number of employed persons increased by 22 000 to 16,7 million in the first quarter of 2024 compared to the fourth quarter of 2023. The number of unemployed persons increased by 330 000 to 8,2 million during the same quarter. 

Additionally, the number of people who were not economically active for reasons other than discouragement decreased by 214 000 to 13,1 million, while discouraged work-seekers decreased by 1 000 in the first quarter of 2024 compared to the fourth quarter of 2023. This resulted in a net decrease of 215 000 in the not economically active population.

The above changes in employment and unemployment resulted in the official unemployment rate increasing by 0,8 of a percentage point from 32,1% in the fourth quarter of 2023 to 32,9% in the first quarter of 2024. The unemployment rate according to the expanded definition also increased by 0,8 of a percentage point to 41,9% in Q1: 2024 compared to Q4: 2023.

Employment by Industry

Between Q4: 2023 and Q1: 2024, the number of employed persons increased in six of the ten industries. The largest increases in employment were recorded in Trade (109 000), followed by Manufacturing (99 000), Private Households (44 000) and Transport (39 000). Decreases in employment were recorded in Community and Social Services (122 000), Construction (106 000), Finance (50 000) and Utilities (17 000) industries.

Compared to the same period last year, a net increase of 552 000 in total employment in Q1: 2024 was largely due to increases in the number of people employed in Finance (247 000), Trade (202 000) and Private Households (122 000) industries. The industries that recorded decreases were Community and Social Services (111 000), Manufacturing (48 000) and Utilities (30 000).

 

Key Labour Market Indicators

Formal Sector

Employment in the formal sector increased by 56 000 in Q1: 2024 compared to Q4: 2023. 

The first quarter of 2024 recorded formal sector employment increases in Trade (124 000), Manufacturing (81 000), Transport (37 000) and Mining (6 000) industries compared to the fourth quarter of 2023. During the same period, decreases in the formal sector employment were recorded in Community and Social Services (78 000), Construction (64 000), Finance (35 000) and Utilities (12 000).

Compared to a year ago, a net gain of 358 000 jobs in the formal sector employment was mainly driven by Finance (287 000) and Trade (152 000) industries in Q1: 2024. Employment losses were observed in Community and Social Services (114 000), Manufacturing (34 000) and Utilities (28 000) industries during the same period.

Formal Sector by Industry

Informal Sector

Following an increase of 124 000 in Q4: 2023, informal sector employment decreased by 100 000 in Q1: 2024. In the first quarter of 2024, informal sector employment decreased by 100 000 persons compared to the previous quarter. Losses in the informal sector employment were mainly driven by Community and Social Services (44 000) and Construction (42 000) industries. 

Compared to Q1: 2023, the employment increase in the informal sector was mainly driven by Trade (50 000) and Transport (25 000) industries. Losses in employment were recorded in Finance (41 000), Manufacturing (14 000), Mining (4 000) and Utilities (2 000) industries.

Informal Sector by Industry

Employment by Province  

The number of employed persons increased in three provinces between Q4: 2023 and Q1: 2024. Employment gains were recorded in KwaZulu-Natal (35 000), Gauteng (26 000) and Northern Cape (4 000). Employment decreases were recorded in Western Cape (17 000), followed by North-West (13 000), Mpumalanga (8 000), Eastern Cape (4 000) and Limpopo (3 000) during the same period, while Free State remained unchanged.

Compared to Q1: 2023, the largest increases in employment were recorded in KwaZulu-Natal (297 000), Limpopo (107 000) and Mpumalanga (101 000). Eastern Cape, Free State and Northern Cape were the only provinces that recorded losses in employment with a decrease of 77 000, 48 000 and 8 000 respectively, during the same period. KwaZulu-Natal had the largest year-on-year percentage change increase in employment of 11,4%.

Province – Unemployment (%)

Gauteng – Unemployment (%)