by Jenny Reid
As of the fourth quarter of 2024, South Africa’s official unemployment stats, state that the unemployment rate has declined slightly to 31.9%, down from 32.1% the previous quarter. While this marks the second consecutive quarterly decrease and the lowest rate since the third quarter of 2023, the persistently high levels of unemployment remain a pressing concern.
The country’s unemployment figures paint a complex picture—an encouraging increase in employment juxtaposed with stubbornly high joblessness, especially among our youth.
Recent data shows that the total number of employed individuals has increased by 132,000, bringing the employed workforce to approximately 17.1 million. Notably, jobs were added across vital sectors such as finance (with 232,000 new jobs), manufacturing, private households, and transportation. These figures signal resilience in specific industries but don’t tell the full story.
A significant portion of employment in South Africa occurs in the informal sector—small-scale, unregistered jobs such as street trading, subsistence farming, and casual labour. While employment in this sector can provide vital income and livelihood support, these jobs are often excluded from official employment figures because they are not formally registered or tracked in government surveys.
This means that many people classified as unemployed in the official statistics may be earning income outside formal channels, which complicates the accurate picture of employment and joblessness in the country. Conversely, “job seekers” do not include those who have given up or are simply not looking for jobs, as well as a variety of other people, making these stats a peak into the situation, at best.
Youth unemployment remains especially troubling, with approximately 10.3 million young South Africans aged 15 to 24 classified as not in employment, education, or training (NEET). This persistent issue hampers individual development and poses long-term economic and social challenges. Those unable to find formal work often turn to the informal economy or fall into unemployment, exacerbating poverty, crime and social instability.
The reliance on informal employment complicates the interpretation of official unemployment statistics. While the official rate highlights formal sector struggles, it doesn’t fully capture those engaged in informal jobs or underemployed workers seeking more stable opportunities.
This gap underscores the importance for policymakers and employers to recognise the broader labour market dynamics and support inclusive employment strategies that embrace informal sector workers.
High unemployment levels aren’t just a statistic—they translate into increased poverty, desperation, and eventually, higher crime rates. Desperate individuals are more vulnerable to scams, including employment fraud and other illicit schemes that exploit those seeking work. These scams prey on the unemployed and underemployed, further destabilising communities and posing risks to organisations that fail to implement rigorous screening processes.
Implications for the Recruitment Sector
In this challenging economic environment, recruitment professionals must prioritise thorough candidate screening. The high number of informal workers and vulnerable job seekers makes identity verification and background checks more critical than ever.
Why Rigorous Screening is Non-Negotiable
Prevent Bad Hires: A costly mistake can set back your organisation—not only financially but also in terms of credibility and safety.
Reduce Fraud Risks: False credentials, identity theft, and employment scams are rising. Effective screening helps verify candidate information and avoid these pitfalls.
Safeguard Organisational Integrity: Rigorous vetting ensures you employ individuals with trustworthy backgrounds, protecting your company’s reputation and maintaining a secure workplace.
South Africa’s ongoing unemployment crisis calls for comprehensive solutions, both from the government and within the private sector. This means implementing robust pre-employment screening practices for recruiters to mitigate risks, uncover genuine talent, and contribute to economic resilience.
In a landscape marked by high unemployment and a substantial informal economy, vigilance and diligence in screening are not just best practices—they’re essential for secure, sustainable and long-term growth.
In uncertain times, thorough screening is your best defence against bad hires, fraud, and future reputational damage.
Protect your organisation, and contribute to a stronger, more honest and established South Africa.
Jenny Reid is a Human Risk Expert and Professional Speaker, and the owner of iFacts based in South Africa, a specialist employee screening and vetting service. She is constantly assessing new and innovative ways to remove the people risk in any organisation. Since 2009 when she took over iFacts completely, she has seen the company double in size and hopes to continue this growth. iFacts specializes in employee Screening, risk assessments, employee wellness, investigations, and truth verification. Jenny is a past President of the Security Association of South Africa. Contact Jenni via email jenny@ifacts.co.za
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