Unemployment in South Africa continues to be a serious problem and the situation worsened during lockdown. In the 2nd quarter of 2020, the expanded unemployment rate breached the 40% mark for the first time since the Quarterly Labour Force Survey was introduced in 2008, and it remained above 40% for the rest of the year.
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Although there was some clawback of jobs, in the last quarter of 2020 Stats SA still recorded a net decrease of 1.4 million (8.5%) in total employment numbers, compared with the same period the previous year. By the end of 2020, 39% of men and 46.3% of women in the labour force were unemployed.
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The official national unemployment rate was 29.1% in the fourth quarter of 2019 and 32.5% in the fourth quarter of 2020.
3 In the fourth quarter of 2021 it had risen to 35.3, and then dropped slightly to 32.7% in the fourth quarter of 2022. This official rate is based on a narrow definition of unemployment that includes only those adults who are defined as economically active (i.e. they are not studying or retired or voluntarily staying at home) and who had actively looked but failed to find work in the four weeks preceding the survey.
An expanded definition of unemployment, which includes ‘discouraged work-seekers’ who were unemployed but not actively looking for work in the month preceding the survey, gives a higher, and more accurate, indication of unemployment. The expanded unemployment rate (which includes those who are not actively looking for work) was 38.7% in the fourth quarter of 2019 and 42.6% a year later at the end of 2020. It rose further, reaching 46.2% in 2021 and then settled back to 42.6% in the last quarter of 2022.
Gender differences in employment rates are relevant for children, as it is mainly women who provide for children’s care and material needs. Unemployment rates are consistently higher for women than for men. At the end of 2019, 42.4% of women were unemployed by the expanded definition (compared with 35.5% of men) and this increased to 44.5% for women at the end of 2022 (compared with 41.1% of men).
4 Of the 12.5 million women who were available and willing to work, 5.6 million could not find work or had given up trying to do so.
Apart from providing regular income, an employed adult may bring other benefits to the household, including health insurance, unemployment insurance and parental leave that can contribute to children’s health, development and education. The definition of ‘employment’ is derived from the Quarterly Labour Force Survey and includes regular or irregular work for wages or salary, as well as various forms of self-employment, including unpaid work in a family business.
In 2019, before lockdown, 70% of children in South Africa lived in households with at least one working adult. The other 30% lived in households where no adults were working. The number of children living in workless households had decreased by 1.4 million since 2003, when 41% of children lived in households where there was no employment. But by late 2020, the share of children in workless households had increased again to 36% (7.3 million) – effectively back to the 2007 rate in percentage terms, though substantially higher in terms of numbers due to a growing population. By 2022, despite slight declines in adult unemployment, the 2019 levels had still not been regained. Nearly 6.7 million children (32%) lived in households where no adults were earning income from employment.
This indicator is very closely related to the income poverty indicator in that provinces with relatively high proportions of children living in unemployed households also have high rates of child poverty. In 2022, nearly 50% of children in the Eastern Cape lived in households without any employed adults, and nearly 40% of those in North West, KwaZulu-Natal and the Free State were in workless households. These provinces are home to large numbers of children and also have relatively high rates of child poverty. In contrast, Gauteng and the Western Cape have the lowest poverty rates, and the lowest unemployment rates, although the effects of job loss were also evident in these provinces in 2020. In the Western Cape, 22% of children lived in households where nobody was working in 2020 (up from 12% in 2019), and in Gauteng the rate was 23% in 2020 (up from 14% in 2019). By 2022 the Western Cape rates had dropped again to 13% but the Gauteng rate remained persistently high at 21%).
Racial inequalities are striking: 35% of African children had no working adult at home in 2022, while 19% of Coloured children and less than 4% of Indian and White children lived in these circumstances. There are no significant differences in child-centred unemployment measures when comparing girls and boys or different age groups. In the rural former homelands, 48% of children lived in workless households in 2022, while the rate was 22% among children in urban areas.
Income inequality is clearly associated with unemployment. Over 70% of children in the poorest income quintile live in households where no adults are employed.
1 Statistics South Africa. QLFS Trends 2008-2020 Q4 (Historical tables). Pretoria: Stats SA.
2 Statistics South Africa (2021). Quarterly Labour Force Survey, 4th quarter 2020. Pretoria: Stats SA.
3 Statistics South Africa (2020-2024) Quarterly Labour Force Survey, 4th quarter 2019-2023. Pretoria: Stats SA.
4 K Hall calculations from Statistics South Africa. Quarterly Labour Force Survey: Quarter 4, 2022. Statistical Release No. P0211. Pretoria. 2023