South Africa faces an increase in unemployment rate

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South Africa’s unemployment rate has hit 32.9% according to the latest data from the Quarterly Labour Force Survey (QLFS) for the first quarter of 2025, released by Statistics South Africa (Stats SA) in a staggering revelation.

The situation is particularly dire for young people aged 15 to 34, who comprise a significant portion of the country’s working-age population, estimated to be around 20.9 million individuals, Cape {town} Etc reports.

The grim reality is underscored by a youth unemployment rate that has risen alarmingly over the past decade.

Younger South Africans face steep challenges in breaking into the job market, with those aged 15 to 24 experiencing the highest barriers.

In a decade, the unemployment rate for this group has surged from 50.3% in Q1 2015 to 62.4% in Q1 2025. Meanwhile, the 25 to 34 age bracket has seen unemployment escalate from 31.4% to 40.4%.

Stats SA says that the results highlight an unnerving trend of deteriorating prospects for the nation’s youth, with joblessness among those aged 15-34 ballooning from 36.9% to 46.1% in the same period.

The divides are stark and multifaceted. The unemployment crisis does not impact all regions equally; young individuals in non-urban areas seem to bear the brunt of the hardship.

For instance, the North West province recorded a staggering 58.8% youth unemployment rate, alongside a mere 43.0% youth labour force participation rate. In the Eastern Cape, where just 39.8% of young people are active in the labour market, the youth unemployment rate stands at 54.3%.

This geographic disparity deepens the trend of economic exclusion for many young South Africans.

The gender divide is equally concerning, as young women struggle significantly more than their male counterparts.

The NEET (Not in Employment, Education or Training) status for individuals aged 15–24 indicates that 37.1% of South African youth fall into this category, with young women experiencing marginally higher rates (37.5%) than young men (36.7%). This gap widens within the broader age range of 15 to 34, where 48.1% of women are NEET compared to 42.2% of men.

For countless young South Africans, the prospect of landing their first job is fraught with challenges.

In early 2025, approximately 1.9 million youth were classified as discouraged work-seekers—individuals who have given up on the search for employment. This figure starkly contrasts with the 1.5 million discouraged adults aged 35 to 64. The statistics also reflect a prevailing crisis of experience: 58.7% of unemployed youth reported having no prior work experience, indicating an endless cycle that stifles both hiring opportunities and skill development.

Education plays a critical role in shaping employment outcomes for youth.

Those without a matric qualification face an uphill battle, with an unemployment rate of 51.6%, the highest among all educational levels. The unemployment rate sits at 47.6% for those who completed their matric, but it drops to 37.3% for those with vocational or technical training.

Meanwhile, university graduates enjoy a starkly lower unemployment rate of 23.9%, showcasing how higher education can serve as a protective buffer in a tumultuous labour market.

Despite these challenges, certain sectors still provide opportunities for the burgeoning youth workforce.

In Q1:2025, the Trade industry, encompassing retail, wholesale and hospitality, remained the largest employer, accounting for 24.5% of employed youth.

Other industries, such as Community and Social Services (19.8%), Finance (18.4%), and Manufacturing (10.5%), continue to offer some respite.

However, a concerning trend persists, as many young workers remain concentrated in low-skilled or service-based roles, which limit their growth potential.

Compiled by: Sibuliso Duba

First published by Cape{town}etc

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