South African jobless rate rises, more give up looking for work

South African jobless rate rises, more give up looking for work

Job seekers stand outside a construction site ahead of the release of the unemployement numbers by Statistics South Africa, in Eikenhof, south of Johannesburg, South Africa, June 23, 2020. REUTERS

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South Africa's unemployment rate rose in the first quarter of this year, with statisticians fretting that increasing numbers of people appear to have given up looking for work.

The country's official unemployment rate - one of the highest in the world - rose to 32.9% from 31.9% in the final quarter of last year. 

Desiree Manamela, chief director of labour statistics at Statistics South Africa, said there were signs that more people of working age were losing hope that work would materialise.

"That increase in discouraged work-seekers, it's a ... worry because we would want to see people being active in the labour market by either looking for employment or participating," Manamela told a press conference.

Five of the 10 industries tracked by the statistics agency recorded employment increases while five saw decreases.

The largest number of jobs lost was recorded in the trade and construction sectors, while the transport and finance sectors added the greatest number of hires.

Black women and young people remained especially vulnerable to joblessness in the first quarter, with unemployment rates of 39.8% and 46.1%, respectively.

Reducing unemployment is a priority for the coalition government that was formed last year after the African National Congress lost its parliamentary majority for the first time since apartheid ended in 1994.

Unemployment has been on the rise since 2016 and has been stuck above 30% for the past five years.

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South Africa unemployment labour market Desiree Manamela

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