South Africa’s unemployment rate dropped from 33.5% in the second quarter of 2024 to 32.1% in the third quarter, mainly due to job creation in community and social services, construction, and trade. This positive shift comes as business confidence grows and economic conditions stabilize, partially driven by the easing of energy constraints and increased business activity.

Sectors such as manufacturing and informal employment have shown signs of recovery, even though challenges remain, especially in mining, where job cuts have been widespread due to high operational costs and weak commodity prices. However, the broader employment landscape still reflects significant difficulties. The expanded unemployment rate, which includes those who have stopped looking for work, remains around 42%, highlighting structural issues. Many economists note that private sector employment is still below pre-pandemic levels as companies are cautious about expanding in a slow-growth economy.

This cautious investment approach, often described as “subsistence investing,” indicates that companies are prioritizing operational maintenance over growth, impacting job creation efforts across the country.