South Africa’s latest Quarterly Labour Force Survey (QLFS) for Q4 2024 shows a marginal decline in unemployment, with 132,000 more people employed and 20,000 fewer unemployed, bringing the official unemployment rate down from 32.1% to 31.9%. While Free SA welcomes any progress in tackling unemployment, this slight improvement does not change the fundamental crisis that continues to plague the country’s labour market.
South Africa’s 31.9% unemployment rate remains alarmingly high, especially when compared to the global average of just 5%. The country consistently ranks among the top five nations with the highest unemployment rates in the world, a distinction that signals the failure of current economic policies. Instead of focusing on short-term public sector job creation, South Africa urgently needs to prioritise private sector-driven growth.
The Need for Private Sector-Driven Growth
Government remains overly reliant on public sector employment and state-led job schemes, yet these approaches come at a high cost to taxpayers and do little to drive real economic expansion. In contrast, the private sector already employs 73.3% of South Africa’s workforce, but its ability to create jobs is consistently hampered by restrictive regulations, policy uncertainty, and failing infrastructure.
The key to reducing unemployment sustainably is to create an economic environment where businesses—particularly small and medium enterprises (SMEs)—can thrive without excessive government intervention. Lessons from global success stories, such as Singapore and South Korea, show that countries that prioritise private sector job creation over government dependency achieve long-term prosperity.
A Sustainable Path Forward
Commenting on the latest employment figures, Reuben Coetzer, spokesperson for Free SA, stated:
“South Africa leads the world in only two things: the rolling maul and youth unemployment. But unlike the rolling maul, youth unemployment has no try-line, no victory—only an ever-expanding scoreboard of despair with each quarterly report. While any reduction in unemployment is welcome, South Africa cannot afford to celebrate small gains while ignoring the bigger picture. A 31.9% unemployment rate remains a national emergency—far above the global average of 5%.”
The government must make a decisive shift towards enabling the private sector, rather than obstructing it. If South Africa continues down its current path of excessive state control and intervention, it will only deepen economic stagnation. Now is the time for bold reforms that prioritise job creation through enterprise, not government dependency.
Government Must Enable, Not Hinder, Job Creation
South Africa’s persistent unemployment crisis is not due to a lack of government intervention—it is the result of too much. Expanding the public sector workforce without addressing inefficiencies, corruption, and excessive government spending only worsens the country’s economic predicament. Instead, the government must focus on creating a business-friendly climate by:
- Reducing red tape and policy uncertainty that deter investment
- Reforming restrictive labour laws that discourage hiring
- Improving infrastructure to support business expansion
- Encouraging entrepreneurship and innovation
- Ensuring fair competition by tackling corruption and political interference
