South Africa unemployment at 12-year high

South Africa’s unemployment rate in the first quarter of 2015 was at its highest level since 2003, according to Statistics SA, which released its quarterly labour force survey in Cape Town on Tuesday.

Statistician-general Pali Lehohla said South Africa’s unemployment level increased to 26.4%, the highest level since 2003, when it hit 30%.

“It was stable at about 24% since 2003 and this spike is a new phenomenon,” he said.

“Unemployment figures always drop in the first quarter of the year because of the impact of the festive season and Christmas, but this result is below the usual dip,” said Kefiloe Masiteng, deputy director-general in charge of social statistics.

The results of the first quarter shows that the working age population was 35.8 million, which included 15.5 million employed, 5.5 million unemployed and 14.8 million not economically active.
“Thus resulting in an unemployment rate of 26.4%, absorption rate of 43.2% and labour force participation rate of 58.6%,” said Lehohla. Lehohla told Fin24 that the high unemployment numbers might not be the worst sign for South Africa. South Africa’s employment rate increased by 1.8% year-on-year (y/y) to 15.5 million people.

He said the fact that there was an increase in employment created an environment of optimism. This optimism encouraged more people to ask for jobs, thus reflecting an increase in unemployment.

In the first quarter, the number of unemployed people was 5.5 million. The expanded unemployment rate, which relaxes the requirement for job searchers to be classified as unemployed, increased by 1.5 percentage points to 36.1%.

“Unemployment still remains the biggest problem in SA,” Lehohla said. “We also see some progression towards where we were in 2008. There is an upward trend, albeit subdued. These are important indices and need to be understood against the labour force participation and absorption rate, which is increasing.”

These results are the first using a new master sample. “Stats SA redesigned the 2007 (old) master sample in 2013 using the 2011 census data,” Stats SA explained. “The new master sample should improve the level of precision in the estimates produced.”

Lehohla said they ran parallel surveys using both samples and there was very little difference in the results, explaining that the new results can be compared to the previous results.

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South Africa unemployment at 12-year high