Unemployment levels continue to rise in build-up to historic elections in South Africa

South Africans go to the polls next week to cast their votes in perhaps one of the most historic general elections in the country’s history. 

One of the myriad of issues voters will have top of mind as they head to the polls on 29 May is the seemingly unabating rise in unemployment levels in the country. The unemployment rate rose by 0.8 of a percentage point from 32.1% in Q4 2023 to 32.9% in Q1 2024 marking a second consecutive increase in the number of people without jobs. The unemployment rate, according to the expanded definition, also increased by 0.8 of a percentage point to 41.9% in the first quarter of 2024.

The number of unemployed persons increased by 330,000 from 7.9 million in Q4 - 23 to 8.2 million in Q1 -24, whilst the number of employed persons increased by a mere 22,000 to 16.7 million in the first quarter of 2024.

In 2019 the ANC, through its National Executive Committee (NEC), set President Cyril Ramaphosa’s government the ambitious target of halving the unemployment rate from the then 27% to 14%. This was intended to be achieved in the five years between the 2019 general election and the general election taking place on the 29th of May.

When South Africans went to the polls five years ago, there were 6.7 million people unemployed in the country. The ANC, which made job creation its number one priority in 2019, will go to the polls next week with unemployment levels having risen 22% to 8.2 million over the ensuing five years. 

The ANC is, however, expected to lose its majority position for the first time on 29 May. The expected post-election coalition is likely to fuel prevailing levels of uncertainty, exacerbate socio-economic imbalances, and no doubt lead to even heightened levels of unemployment in the country.

The ever-rising levels of joblessness in South Africa has placed enormous pressure on the country’s fragile social safety net. Rampant unemployment, inextricably linked to a failing economy, has led the ANC government to pivot to other areas to garner support from voters, actively touting its social welfare system to vulnerable and impressionable voters. The recent signing into law of the National Health Insurance (NHI) Bill is a manifestation of this.

Social security and economic prosperity were the bedrock tenets of the ANCs policy when it came into power in 1994. Fast forward 30 years and what do we have?

What we have is a situation where 27,78 million South Africans, or close to 50% of the country’s population, rely on cash grants and other social support offered by the state’s social welfare system, a system funded by a tax base of only 7.1 million (down from 7,4 million last year).

South Africa now has four times as many social grant recipients as personal income taxpayers.  The social security system is severely strained and is simply not sustainable. The gravitas of the situation is underscored by the fact that 36 million, or 60% of the country’s population are currently living in poverty.   

At the risk of stating the obvious, what we need right now is a paradigm shift in the collective thinking of the South African populace. Not doing so will lead to the perpetuation of the disastrous social-economic-political situation which has prevailed in the country for decades. Albert Einstein is credited for defining insanity as doing the same thing over and over again and expecting a different result.

The truism of the esteemed Dr Einstein’s words in the context of the upcoming elections is palpable.

Get in touch

Visit www.dynamixhrsolutions.com to view my other Human Resources, Labour Relations and Leadership related articles, all written from a local and international perspective, and to see how Dynamix HR Solutions can assist you, your business, or your company with your people management matters.

Dynamix HR Solutions offers a wide and diverse range of Human Resources and Labour Relations services and solutions tailored to meet your business’s specific needs and requirements, as well as your budget.