The official unemployment rate has increased to 35.3% in the fourth quarter of 2021. Marking the highest rate since 2008. This shows an increase of 0.4% compared to the previous quarter which had a 34.9% unemployment rate. To put it into perspective, this 0.4% equals a total of 278 000 unemployed persons. Pushing the estimated total of jobless citizens to 7.9 million.
The Unemployed Outweighed the Employed
At the same time the number of employed persons also went up. Having increased by 262 000 individuals. The problem is that the jobs created were simply insufficient to fully offset the additional number of work seekers.
According to Stats SA, the net increase in employment was mainly due to an increase recorded in employment in private households, covering 129 000 of the newly employed. While trade accounted for 118 000 and Social services 73 000. Additionally agriculture contributed another 38 000 jobs and the finance industry added 18 000.
The decrease in numbers is mostly attributed to the manufacturing sector, who shed 85 000 jobs. As well as the construction sector with its 25 000. Following them was utilities sector with 14 000 job losses and transport which shed 13 000 jobs.
Delay in Publication of Unemployment Statistics
These statistics were finally published after a delay of more than a month. Stats SA said that it had to postpone the release due to “quality checks”.
The organisation used to collect data on employment status directly from households. However, the Covid pandemic made face to face consultation impossible. So it switched to “computer-assisted” telephone interviews. Unfortunately this reached fewer people and has “limitations”, with “low response rates”. Stats SA claims that in the fourth quarter, there were responses on fewer than 45% of calls made.