Not unexpectedly, the latest unemployment figures for the second quarter of 2024 rose to 33,5% against the background of previous weak economic data that negatively influenced job creation.

In commenting on the release of the Quarterly Labour Force Survey for the second quarter of 2024 by Statistics SA, Prof Raymond Parsons, economist from the North-West University (NWU) Business School, says the gross domestic product (GDP) growth figures in recent quarters have been disappointing.

“It was inevitable that poor growth would be reflected in yet higher unemployment. Narrowly defined, one in three of the working-age population is now unemployed. The continued high level of youth unemployment remains of great concern.”

According to Prof Parsons, the latest overall unemployment figures again reinforce the urgency outlined by the Government of National Unity (GNU) for South Africa to prioritise much higher inclusive and job-rich growth.

“Already, the prospects for stabilising and eventually reducing the high level of unemployment are being improved by the phasing out of load-shedding, higher infrastructure spending, stronger business confidence and reduced policy uncertainty. These could, in time, build a sustainable platform for increased job creation in future.”

However, he says it also reinforces the need to expedite those structural economic reforms that will turn the South African economy around sooner rather than later and put it on a much higher growth trajectory.

“Current forecasts of about 1,0% GDP growth this year are simply not good enough. The prevailing bad news on the unemployment front therefore can only be converted to better news in future if the economic remedies South Africa needs are given high priority.”