[ad_1]
The official unemployment rate is now 32.5%.
- SA’s official unemployment rate has risen to 32.5%, in line with economists’ expectations.
- While there were improvements in employment during the fourth quarter, one million more people joined the workforce and added to those in the unemployment queue.
- Unemployment is still concentrated among young people and black Africans.
The country’s official unemployment rate has risen to a record 32.5%, as the number of unemployed in South Africa rose to 7.2 million in the fourth quarter of 2020.
Statistics South Africa (Stats SA) released the Quarterly Workforce Survey (QLFS) on Tuesday, which showed the rising unemployment rate is due to more people joining the workforce, as economists expected.
According to Stats SA, one million more people joined the workforce.
In total, there were 333,000 jobs to 15 million in the fourth quarter of 2020. The largest increases in employment were obtained in the formal sector (up to 189,000), followed by private households (up to 76,000), the informal sector (up to 65,000) and the agricultural sector (up to 2000).
Stats SA, however, highlighted that the movement towards unemployment exceeded that of employment.
The agency also noted that the increase in the unemployment rate to 32.5% is the highest since the QLFS began in 2008.
The expanded definition of unemployment, which includes those discouraged from looking for work, increased to 42.6% in the fourth quarter.
More than half (52.3%) of the 7.2 million unemployed had educational levels below enrollment. In comparison, only 1.8% of the unemployed were graduates and 7.5% had other tertiary qualifications.
Unemployment was mainly concentrated among young people – those between 15 and 24 years old with a rate of 63.2% – and those between 25 and 34 years old, with a rate of 41.2%.
Stats SA also highlighted that unemployment is higher among black Africans (36.5%), compared to other population groups. Black African women are the most vulnerable, with an unemployment rate of 38.5%, according to a presentation by Stats SA.
Impact of Covid-19
The agency also collected data on the impact of the national lockdown on employment conditions. Of the 15 million people employed in the quarter, 78.3% or eight out of 10 people were expected to work during the close. However, 66% or two out of three people said they couldn’t work due to the national shutdown.
“Those who actually worked were predominantly men in most industries, except in the social and community services sector and private households, where the majority were women,” Stats SA said in its report. It also highlighted that professionals and managers were more likely than those in other occupations to work from home.
Stats SA also noted that most individuals continued to receive payment during the closing. “However, those with lower levels of education were more likely to receive reduced wages than those with higher levels of education.”
About 95.4% of those surveyed said they would return to the same job after closing. About 1.3% of those surveyed said they would not return to the same job and 3.4% were unsure; He also indicated that he was concerned about losing his job.
