Data from Statistics South Africa (StatsSA) showed that South Africa's official unemployment rate remained high at 32,7% in the fourth quarter of 2022, but reflected a slight moderation from 32,9% in the third quarter of 2022 - the lowest since the first quarter of 2021.

Overall, the economy continued creating jobs in the fourth quarter of 2022, with cumulative net job gains over the past five quarters amounting to 1 652 486, comprising 1 348 973 formal jobs and 303 513 other jobs.

15,9 million employed in South Africa

According to the survey, 169 000 jobs were added in the three months leading up to December 2022, bringing the total number of people employed to 15,9 million.

During the same period, the number of unemployed increased by 28 000 to 7,8 million, while those who were not economically active for reasons other than discouragement increased by 95 000 to 13,4 million.

The 169 089 new jobs in 4Q22 consist of 142 805 in the formal sector and 54 119 in private household jobs.

Meanwhile, the informal sector shed 15 474 jobs, and the agricultural sector shed 12 361 jobs. The number of estimated SME owners, which account for close to 16% of total employment, was 2 477 069 in December 2022, reflecting a decline of 103 969 from October 2022 - a 111 104  increase from the previous year.

Within the formal and informal non-agricultural sector:

Mining and quarrying gained 29 652 q/q and 66 378 y/y jobs.
Manufacturing gained 25 634 q/q and 339 657 y/y jobs.
Electricity, gas, and water supply gained 7 657 q/q and 42 555 y/y jobs.
Construction lost 11 587 q/q but gained 78 809 y/y jobs.
Wholesale and retail trade, motor trade, hotels and restaurants gained 51 865 q/q and 401 572 y/y jobs.
Transport, storage, and communications gained 43 498 q/q and 31 806 y/y jobs.
Financial intermediation, insurance, real estate, and business services gained 103 033 q/q and 79 311 y/y jobs.
Community and social services lost 121 871 q/q but gained 462 490 y/y jobs.

Half a million jobs less than pre-Covid

Total employment is still below pre-pandemic levels by nearly half a million jobs (485 775), with the formal sector below by 353 778, private households by 131 997 and agriculture by 24 965. The informal sector is above pre-pandemic levels by 37 204, likely indicating that some job losses migrated into the informal sector.

"Nevertheless, it is encouraging that the labour market has gained momentum over the past five quarters. We expect the recovery in employment to continue, albeit slowly, especially given the prevailing domestic and global headwinds."

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