South Africa:
Tracking the performance of the labor market through an inclusive lens (Q4: 2024 update) March 2025
At 31.9%, South Africa’s unemployment rate remains high – and it is among the highest in the world. When the expanded definition (including discouraged work-seekers) is considered, it reaches 41.9%. Population of working age (15 – 64 years) 41.6 million
Unemployment rate (15 to 64 years) by country (latest annual data point available)
32.6% Economically inactive 16.5 million
Labor force 25.1 million
Unemployment rate of 31.9%
Source: WB calculations based on the Quarterly Labor Force Survey
Source: International Labor Organization (ILO) https://rshiny.ilo.org/dataexplorer35/? lang=en&segment=indicator&id=UNE_DEAP_SEX_AGE_RT_A&ref_area=AFG
In Q4:2024, 132,000 jobs were created bringing total employment to 17.1 million. The labor absorption rate remains stubbornly low at 41.1%. More people are losing hope of finding a job and have stopped job hunting. Labor market characteristics: quarter to quarter and year on year changes - Q4: 2024 compared to Q3: 2024 and to Q4: 2023
Employed / population ratio (Absorption): Q1: 2008 - Q4: 2024 Labor absorption is 5 percentage points lower than it was in 2008.
Hopelessness is growing. Compared to Q3, about 111,000 more unemployed individuals are discouraged and are no longer searching for employment and about 417,000 compared to a year ago.
132,000 more jobs compared to Q3: 2024
Source: WB calculations based on the Quarterly Labor Force Survey (QLFS) – Q4: 2023, Q3:2024 and Q4: 2024
Source: Statistics South Africa and WB calculations based on the Quarterly Labor Force Survey (QLFS) – Q1: 2008 – Q4: 2024
At 16.8 million in 2024 (on average), employment has exceeded the pre-covid levels. However, if the average annual employment growth rate for the 5 years prior to COVID (2015 to 2019) is considered, employment should be at about 17.7 million. This translates to about 0.9 million more jobs than there is. Actual employment (2015 - 2024) and projected employment (2020 2024) Pre-covid employment growth rate is maintained.
17 659
Projected unemployment figures are based on average annual employment growth rate for the 5 years prior to Covid (2015 – Source: WB calculations based on2019) the Quarterly Labor Force Survey (QLFS) – 2015 – 2024
Of the total unemployed, 6.2 million are in long-term unemployment (1 year or longer), more than 3 out of 4 unemployed persons (77.7%). Long-term unemployment levels are higher for women, older age groups and the unskilled Unemployed population (in millions) by duration of unemployment: Q1: 2008 - Q4: 2024
Source: Stats SA calculations based on the Quarterly Labor Force Survey (QLFS) Q1: 2008 – Q4: 2024
Proportion of population (15 - 64 years) in long-term unemployment by gender, education level and age-group - Q4: 2024
Source: WB calculations based on the Quarterly Labor Force Survey (QLFS) – Q4: 2024
Youth unemployment remains exceptionally high. About 60% of the youth aged 15 to 24 years and 39% of those aged 25-34 years remain unemployed. The youth benefited a mere 28% from jobs created in Q4-2024. Unemployment by age - Q3: 2024 and Q4: 2024 59. 6
Labor market characteristics (15 - 34 years) – Q3: 2024 and Q4: 2024
Youth unemployment exceptionally high. 39. 4
Source: WB calculations based on the Quarterly Labor Force Survey (QLFS) – Q3: 2024 and Q4: 2024
The rate of youth not in employment, education or training (NEET) is high (42.9% in Q4: 2024). About half of this youth have attained secondary education (42%) or higher (8%). Share (%) of youth aged 15 - 34 years not in employment, not in education and not in training - Q3: 2024 and Q4: 2024
Distribution of the NEET youth aged 15 - 34 years by education attainment - Q4: 2024 Half of NEET youth have completed secondary education or higher
Source: WB calculations based on the Quarterly Labor Force Survey (QLFS) – Q3: 2024 and Q4: 2024
At 33.9%, the unemployment rate for women is still significantly higher than that of men (30.1%). The gender unemployment gap narrowed by 0.5 percentage points compared to the last quarter as women gained a larger share of the jobs created (69%) in the fourth quarter of 2024. Between Q3: 2024 and Q4: 2024 About 41,000 more men were employed and 19,000 more unemployed
About 91,000 more women were employed and about 38,000 less unemployed
Labor force - men (in millions)
Labor force - women (in millions)
The unemployment gap between men and women narrowed by 0.5 percentage points when compared to the prior quarter.
Source: WB calculations based on the Quarterly Labor Force Survey (QLFS) – Q3: 2024 and Q4: 2024
Most jobs were created by private enterprises (99,000 jobs), mostly in the formal sector (90,000 jobs). In addition, a shift of jobs from skilled occupation to semi-skilled occupations occurred during this quarter. The formal sector gained most jobs, followed by the informal sector. Labor force - men (in millions)
Semi-skilled occupations gained most jobs. Labor force - women (in millions)
Private enterprises created the most jobs. Unemployment rate by gender (%)
Changes between Q3: 2024 and Q4: 2024 Source: WB calculations based on the Quarterly Labor Force Survey (QLFS) – Q3: 2024 and Q4: 2024
Despite 132,000 jobs created in the Q4 of 2024, only four sectors—finance, manufacturing, private households, and transport—experiencing increases in employment. The community, social, and personal services (CSPs) sector, which represents the largest portion at 23% of total employment, saw most job losses. Finance led in job growth, followed by manufacturing. Employment changes (‘000) by industry – Q3: 2024 and Q4: 2024
Employment shares (%) by industry - Q4: 2024
Shed 63,000 jobs
Gained 232,000 jobs
Source: WB calculations based on the Quarterly Labor Force Survey (QLFS) – Q3: 2024 and Q4: 2024
Sub-nationally, Western Cape’s unemployment remains the lowest at 19.6% compared to other provinces. North West and Free State registered the highest unemployment rates in Q4 of 2024 overtaking Eastern Cape. Metropolitan areas generally have lower unemployment levels than non-metropolitan areas, with the exception of Western Cape. Unemployment rate by province - Q3: 2024 and Q4: 2024 The unemployment rate increased in North West, Free State and in Gauteng
Source: WB calculations based on the Quarterly Labor Force Survey (QLFS) – Q3: 2024
Unemployment rate by province and metro/non/metro – Q3:2024 Metros are doing better than the non-metros in all provinces except in Western Cape
Source: WB calculations based on the Quarterly Labor Force Survey (QLFS) Q4:
More than a third of the working-age population is economically inactive, with levels of inactivity almost 9 percentage points higher for women than for men. Rate of inactivity by gender: 15 - 64 years - Q4: 2024
Source: WB calculations based on the Quarterly Labor Force Survey (QLFS) – Q4: 2024
Putting it all together: labor market status of the working-age population (Q4-2024, 15– 64 years) Population of working age 41.6 million (up 130,000 Q-Q, up 539,000 Y/Y)
Labor Force 25.0 million
Economically Inactive 16.3 million
(112,000 Q-Q, & 450,000 Y/Y)
Unemployed 8.0 million
(18,000 Q-Q, & 89,000 Y/Y)
Employed 17.1 million
(-20,000 Q-Q, & 96,000 Y/Y)
(132,000 Q-Q, & 355,000 Y/Y)
Long-term unemployment
Short-term unemployment
(1 year or more) 6.2 million
(less than 1 year) 1.8 million
Private (including NGOs/CBOs) 14.2 million
Public 2.8 million
Waged 11.3 million
Public 2.9 million
Formal sector 78.3%
Formal sector 29.5%
Discouraged job seekers 3.5 million
(111,000 Q-Q, & 417,000 Y/Y)
Other Inactive 13.0 million
(-93,000 Q-Q, & -328,000 Y/Y)
Scholar/student = 6.1m Home-maker = 2.2m Health reasons = 1.5m Too young/old/retired = 1.8m Other = 1.3m
Source: WB calculations based on the Quarterly Labor Force Survey (QLFS) Q4:2024 compared to Q3: 2024 and Q4: 2023