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Where the jobs are in South Africa’s eight metros

South Africans are poorer, facing financial hardships and struggle to land employment, but the eight metros may be the places where the jobs are. 

At 33.5% in the second quarter, the official joblessness rate is above pre-Covid 19 levels.    

According to Statistics South Africa (Stats SA) the economy grew a modest 0.4% in the second quarter of 2024 and the Quarterly Labour Force Survey (QLFS) recorded a rise in unemployment during the same period.   

Negative numbers 

A total of 33.5% national unemployment and a 60.7% labour force participation mean more economic misery for most.    

There are 40 million people of working age in South Africa. More than eight million are unemployed. An estimated 16 million are employed in both the formal and informal sectors.

The rest are discouraged job seekers, and those who are neither in training, education or employment. People in this group are known as economically inactive.  

Metros’ breakdown 

Some metros outperform the second quarter QLFS unemployment and labour force participation rates national averages while other major municipalities are worse off.    

The City of Cape Town’s 23.4% unemployment and 71% labour force participation rate translate into better prospects in searching for and finding a job.  

eThekwini documented unemployment of 23% and a 60.8% labour force participation rate. Mangaung recorded 30.5% unemployment and a 60.1% labour force participation rate. 

Labour lowdown 

Nelson Mandela Bay had 30.9% unemployment and a 57% labour force participation rate. Buffalo City’s unemployment was 33.7%, with a 67.5% labour force participation rate.

Gauteng trio  

Gauteng’s three metros – Ekurhuleni, Johannesburg and Tshwane – had varying outcomes. 

In Ekurhuleni, Gauteng’s industrial hub, the unemployment rate was 33.4% and labour force participation 66.2%. 

Johannesburg, the province’s economic powerhouse and financial hub, had an unemployment rate of 34.3% and 72% labour force participation. 

In Tshwane, home to South Africa’s capital city and the seat of executive power, unemployment was 35.3%, with 71% labour force participation.  

Where the jobs are

A Nedbank Group Economic Unit analysis of the QLFS figures said manufacturing and mining continued to create new jobs. 

“The sectoral breakdown shows mixed performances,” said the Nedbank Group Economic Unit. “Most … job losses occurred in the domestic trade sector, which shed 111,000 jobs or 3.2% over the quarter, reversing the 109,000 jobs created in [the first quarter].” 

Macro problems

In a statement following a post-financing assessment of South Africa, the International Monetary Fund (IMF) said real per capita GDP had been declining over the last decade.

Per capita GDP is a measure of average incomes per person. That effectively means South Africans’ incomes have been declining or stagnant while the cost of living has been rising. The South African has reported on the gendered nature of income in the country. 

Worryingly, according to the IMF, poverty in South Africa is triple that of the Group of 20 emerging-market median. 

Government response

The National Treasury said: “While recognising the macroeconomic challenges highlighted by the IMF, the … government has affirmed its commitment to prioritise rapid, inclusive and sustainable economic growth to tackle prevailing high levels of poverty and inequality.”

In what ways do you think you are getting poorer?

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