South Africa - The latest results from the Quarterly Labour Force Survey (QLFS) reveal a significant increase in employment and a decrease in unemployment rates in South Africa for the third quarter of 2023. The number of employed persons rose to 16.7 million, up from 16.3 million in the previous quarter.

According to South African Government News Agency, the third quarter of 2023 saw a decrease of 72,000 in the number of unemployed persons, bringing the total down to 7.8 million. In addition, the number of people not economically active for reasons other than discouragement decreased by 160,000 to 13.1 million, and discouraged work-seekers dropped by 26,000. This resulted in a net decrease of 186,000 in the not economically active population.

These changes in employment and unemployment led to a reduction in the official unemployment rate, which decreased by 0.7 percentage points from 32.6% in the second quarter to 31.9% in the third quarter of 2023. The unemployment rate, as per the expanded definition, also decreased by 0.9 percentage points to 41.2% in the third quarter.

The formal sector experienced an employment increase of 287,000, while the informal sector saw a rise of 29,000 jobs in the same period. Significant employment gains were noted in the finance (237,000), community and social services (119,000), and agriculture (61,000) industries. However, employment losses were recorded in manufacturing (50,000), mining (35,000), transport (20,000), and utilities (16,000).

In terms of regional employment changes, KwaZulu-Natal, Limpopo, North-West, and Mpumalanga reported the largest employment increases, with gains of 152,000, 70,000, 61,000, and 44,000, respectively. The only employment loss was recorded in the Free State, with a decrease of 3,000.

The youth labor market also showed signs of improvement. The total number of unemployed youth (aged 15 – 34) decreased by 174,000 to 4.6 million, while the number of employed youth increased by 237,000 to 6.0 million. Consequently, the youth unemployment rate dropped by 1.9 percentage points from 45.3% in the second quarter to 43.4% in the third quarter of 2023, as reported by Stats SA.