Unemployment Rate Evolution in South Africa from 1998 to 2023

South Africa’s unemployment rate has remained persistently high, beginning at 25% in 1998 and fluctuating in the years that followed. Early 2000s levels rose to nearly 30%, reflecting economic restructuring and challenges in job creation within a developing economy. Unemployment then improved slightly, declining to 19.5% in 2008, largely due to growth in mining and service sectors, as well as increased public sector hiring. However, the global financial crisis in 2008 led to economic contractions, causing the unemployment rate to rise again to over 20% by 2010.

From 2010 onward, unemployment fluctuated around the mid-20% range, with a notable rise beginning in 2016 due to slower economic growth and limited private-sector job creation. By 2021, South Africa’s unemployment reached 28.8% amid the COVID-19 pandemic’s impact, which strained an already fragile labor market. Despite a slight decrease to 28.0% in 2023, the high unemployment rate continues to reflect deep-rooted structural issues, including skill mismatches and limited economic diversification.