The 1% rise in the 1Q 2025 unemployment level again raises another red flag about SA’s weak growth performance.
With GDP growth forecasts for 2025 having been progressively reduced by various institutions and economists to about 1.5% and below, it is not unexpected that this should now be reflected in higher unemployment levels. The overall total unemployment level is now where it was a year ago and youth unemployment in particular remains at an unacceptable magnitude. The latest rise in unemployment again confirms that economic growth in SA has been too low for too long.
There is no magic wand to create jobs overnight, as the disappointing unemployment picture is the cumulative outcome of seasonal, cyclical and structural factors. But the deteriorating employment outlook nonetheless again reinforces the fact that the third Budget on May 21st must be a growth-driven one. It needs to create a policy environment which promotes economic expansion and boosts investor confidence. The Budget must be dedicated to policies and projects that demonstrably support the GNU’s commitment to at least 3% GDP job-rich growth in the medium term.