On Tuesday 1 June, Statistics South Africa (Stats SA) released the results of its Quarterly Labour Force Survey for the aforementioned quarter – January to March 2021 - confirming negative sentiment and predictions by economists. 

The unemployment rate now sits at 32,6% - the highest since Stats SA began the survey in 2008. Stats SA does caution that some factors need to be taken into consideration when interpreting the unemployment figures. This includes the fact that the Covid-19 pandemic has altered the way in which Stats SA collects employment data and the labour force participation which was lower in this quarter, as compared to the final quarter of 2020. 

Statistician-General of South Africa, Risenga Maluleke, elaborates on the survey in his interview on CNBC Africa.

Maluke says the expanded unemployment rate on the other end rose by 0,6% to 43,2% between the two quarters. He explains that the expanded unemployment rate takes into consideration discouraged work-seekers - those who have given up on gaining employment. The Covid-19 pandemic has been said to have contributed to the rising number of discouraged work-seekers.

Whilst the debate on media platforms suggest that the number of unemployed graduates is high, Tashmia Ismail, the Chief Executive Officer (CEO) of the Youth Employment Service (YES), previously told the Business Hour that university graduates only constitute a mere 8% of the overall unemployment rate in South Africa. 

Ismail says South Africans without a matric certificate or those with only a matric are in fact the most unemployed in the country - roughly 56% - and it is them that we need to focus on. YES is a joint national initiative between business, government and labour that aims to address the youth unemployment crisis in South Africa by providing 12-month quality work experiences to unemployed youth. Ismail encourages business owners to not just automatically hire university graduates, but rather take a risk, on that which is unexpected.

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