Unemployment rate drops to 32.7% — five key things you need to know

The unemployment rate has decreased by 0.2 of a percentage point from 32.9% in the third quarter of 2022 to 32.7% in the fourth quarter, Stats South Africa revealed. 

The latest Stats SA data released on Tuesday showed the unemployment rate, according to the expanded definition of unemployment, decreased by 0.5 of a percentage point to 42.6% in the fourth quarter compared with the third quarter.

About 169,000 jobs were gained between the third r and fourth quarters of 2022. The total number employed was 15.9-million in the fourth quarter.

There were about 28,000 more people unemployed than in the third quarter.

How long have been people been unemployed?

In the fourth quarter of 2022, 7.8-million people were without work, looking for work and available to work, of which 6.1-million were in long-term unemployment and 1.7-million in short-term unemployment. 

“While short-term unemployment refers to unemployment of less than a year, long-term unemployment refers to a year or more. Apart from other factors such as low levels of education and lack of experience, long-term unemployment negatively affects the employability of unemployed persons while short-term unemployment provides time for job seekers to find favourable employment,” said Stats SA. 

Which sectors recorded the largest job gains?

Industries such as finance (103,000), private households (54,000), trade (52,000) and transport (43,000) recorded the largest job gains. 

Job losses were recorded in community and social services (122,000), agriculture (12,000) and construction (12,000). 

The formal sector recorded an increase in employment of 143,000 and the informal sector recorded a loss in employment of 15,000 between the third and fourth quarters of 2022.