A protracted recession and, most recently, the COVID-19 pandemic have made it difficult for the continent’s most industrialised economy to generate a large number of jobs in recent years.

About 8.4 million people were out of work, up from 5.2 million in 2014. There were 161 million employed people, a 92,000 decrease by Q2 2024. Agriculture, construction, and trade were the industries with the largest employment declines registered, while utility, social services, and manufacturing were the only industries to add jobs.

The statistics represent the first public releases following the coalition government formed in May 2024, which prioritised recovering the failing economy. The African National Congress (ANC) lost an absolute majority in the vote, probably in part because unemployment was a major political issue.

The Western Cape, Mpumalanga, and KwaZulu-Natal provinces saw the biggest declines in employment, according to the statistics office.

Laying out the government’s priorities for the next five years, President Cyril Ramaphosa said recently that officials thought small businesses and the informal sector held the greatest potential for job creation.

However, economist Sanisha Packirisamy at local investment firm Momentum Investments, told Reuters that since the COVID-19 pandemic, there had been a recovery in employment in areas viewed as more highly skilled, largely in the services sector. Whereas for workers classified as unskilled or semi-skilled there had barely been a recovery.

Packirisamy further stated that significant job creation in the African country would take time, and “as such we are not expecting significant job growth in the remainder of this year”.

Under an expanded definition of unemployment, which includes those discouraged from seeking work, 42.6% were jobless in the second quarter of 2024 compared with 41.9% in the previous three months.

Solly Molayi, acting head of population statistics, said the hotel and restaurant sector lost 87,000 jobs in the second quarter and was the biggest contributor to joblessness in trade.

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Employers are urged to hire young, inexperienced job searchers through the Employment Tax Incentive, remarked President Cyril Ramaphosa during his recent State of the Nation Address.

A cost-sharing arrangement with the government will lower the employers’ costs to hire young people while maintaining the basic wage parameters.

The employer may claim the total Employment Tax Incentive calculated for all qualified employees, which will lower the Pay-As-You-Earn (PAYE) tax due. On January 1st, 2014, this incentive went into effect.

“Our economy has grown more recently than it did before the pandemic. Around 1.5 million additional employment were added to our economy during the third quarters of 2021 and 2022,” President Cyril Ramaphosa noted.

He mentioned that more than a million people had received employment and income prospects due to the Presidential Employment Stimulus.

“Last year, we discussed how important the Presidential Employment Stimulus is for creating employment and income prospects. Every province and area in our nation has now benefited from the initiative’s creation of more than one million opportunities,” he claimed.

A new group of 150,000 school assistants has also begun working at more than 22,000 educational institutions within the country since February 2023.

President Cyril Ramaphosa also declared that the country’s Social Employment Fund is seeking 50,000 members for its upcoming labour phase for the common good.

The revitalised National Youth Service will create 36,000 job possibilities in South Africa through nonprofit and community-based organisations.

The Department of Home Affairs has also hired the first batch of 10,000 young South Africans to digitise over 340 million paper-based civic records.

“SAYouth.mobi, a zero-rated online platform enabling young South Africans to access chances for learning and earning, now has more than three million registered members,” President Cyril Ramaphosa stated, while claiming that the National Youth Development Agency, which continues to offer assistance to young entrepreneurs and job seekers, was closely involved in the process.

President Cyril Ramaphosa also claimed that the ‘Presidential Employment Stimulus’ is helping people sustain their ability to make a living independently.

Approximately 140,000 small-scale farmers have been given input coupons to purchase seeds, fertiliser, and equipment, advancing agricultural reform and food security.

About 640,000 hectares of land have been cultivated as a result of this initiative. According to President Cyril Ramaphosa, 68% of these farmers are women.

He also talked about the government’s plans of giving 250,000 extra vouchers to small-scale farmers by 2023 end.

“These are illustrations of how innovation, ingenuity, and dedication on the part of the government can improve the lives of citizens,” he remarked.

“This year, the National Skills Fund will provide R800m through an innovative model that links payment for training to employment outcomes to develop skills in the digital and technology sector,” President Cyril Ramaphosa added.

President Cyril Ramaphosa also reaffirmed his government’s demand of businesses and departments to drop the condition of young people seeking entry-level positions to have work experience.

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