Rising unemployment rate ‘highlights need for economic reforms’

Parsons was responding to the latest Quarterly Labour Force Survey, which reveals that the country’s unemployment rate increased to 33.5% in the second quarter of 2024. 

Parsons said the rise in unemployment was no surprise, given the sluggish economic growth.

"The latest overall unemployment figures again reinforce the urgency outlined by the Government of National Unity for South Africa to prioritise much higher inclusive, 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, 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," said Parsons.

At the same time, Professor of Economics Waldo Krugell said while many South Africans were optimistic about job creation following the recent elections, it is still too early to see the results of the new administration.

He noted that improvements are likely later in the year.

“The increase in the unemployment rate and the 92,000 jobs lost will take reflect a very tough second quarter. It will take some time in the optimism about the economy following the elections to translate into growth and job creation.

“We can take heart that there were improvements in a number of indicators in July and August and that the economy is likely to keep improving in the second half of the year.”

ALSO READ: