SA’s unemployment rate dips to 32.9% in Q3

South Africa has been grappling with high unemployment rates for some time, but there seems to be a glimmer of hope on the horizon as the latest Statistics SA third quarter report shows a decrease in unemployment. Joining CNBC Africa to discuss this positive development is Risenga Maluleke, Statistician-General and Head of Statistics South Africa. Maluleke highlights the significant improvement in the employment situation in the country, noting that there has been a steady increase in the number of jobs over the past few quarters. In the third quarter of 2022 alone, an additional 200,000 jobs entered the local economy, building on the gains seen in the previous quarters. The data reveals a decline in the number of unemployed individuals, with 269,000 fewer people without jobs in the third quarter compared to the second quarter. This drop has reduced the number of unemployed individuals from 8 million to 7.7 million, leading to a decrease in the official unemployment rate from 33.9% to 32.9%. Maluleke emphasizes that the positive trend is not limited to the narrow definition of unemployment but extends to the expanded definition, which includes discouraged workers and individuals who are not actively seeking employment for various reasons. The expanded definition unemployment rate stands at 43.1%, showing a slight improvement from the previous quarter. One key aspect highlighted by Maluleke is the increasing absorption rate, which indicates a narrowing gap between the labor force participation rate and the rate at which people are finding employment. This suggests that more people are entering the workforce and securing jobs, contributing to the overall decline in the unemployment rate. When discussing the economically non-active population, Maluleke points out that there are various reasons why individuals may choose not to participate in the labor market. Factors such as being a student, a homemaker, too young or too old to work, living with a disability, or being ill contribute to the category of people who are not economically active. Overall, the latest statistics indicate a positive shift in South Africa's employment landscape, with more people finding jobs and fewer individuals facing unemployment. While challenges remain, the downward trend in the unemployment rate is a promising sign for the country's economy and its workforce.