The Northern Cape recorded the largest decrease in unemployment in South Africa, with the official unemployment rate dropping from 30.4% to 27.4% in Q4:2024, alongside significant job gains in key sectors such as agriculture and finance.
🔹 Key Highlights
📉 Unemployment Rate:
The official unemployment rate in the Northern Cape dropped to 27.4% in Q4:2024, down from 30.4% in Q3:2024 (-3.0 percentage points).
The expanded unemployment rate (including discouraged job seekers) fell to 39.7%, a decrease of 3.4 percentage points.
📈 Employment Gains:
Employment in the Northern Cape grew by 18,000, rising from 337,000 in Q3 to 355,000 in Q4.
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By Staff Reporter
THE NORTHERN Cape has recorded the largest drop in unemployment across all provinces in the country, with the latest Quarterly Labour Force Survey (QLFS) for Q4: 2024 showing a significant decline of 3.0 percentage points in the province’s official unemployment rate. Statistics South Africa released the report on February 18, 2025, providing a comprehensive look at employment trends in the province.
According to the report, the Northern Cape’s official unemployment rate decreased from 30.4% in Q3: 2024 to 27.4% in Q4: 2024, marking a notable improvement in the provincial job market. The expanded unemployment rate, which includes discouraged job seekers, also saw a decline, dropping by 3.4 percentage points to 39.7%.
Employment Gains in the Northern Cape
The province saw an increase of 18,000 jobs between the third and fourth quarters of 2024, bringing the total number of employed people to 355,000. This reflects a 5.3% increase in employment quarter-on-quarter, positioning the Northern Cape among the top provinces that recorded positive employment growth.
The employment gains contributed to a drop in the number of unemployed individuals, which fell from 147,000 in Q3 to 134,000 in Q4. Additionally, the number of discouraged work-seekers in the province decreased by 4,000, while those who were not economically active for reasons other than discouragement declined to 354,000.
Industry Trends: Where the Jobs Were Created
The Agriculture sector emerged as the biggest contributor to job creation, adding 13,000 jobs in the Northern Cape in Q4: 2024. The Finance sector also experienced a significant boost, with 12,000 new jobs added.
Other key industries that recorded employment growth include:
- Manufacturing (+2,000 jobs)
However, employment declined in three industries: Construction, Community and Social Services, and Private Households
Notably, the Mining and Utilities sectors recorded no employment gains or losses, indicating a period of stability in those sectors.
Youth Employment Shows Positive Shift
The latest data offers a glimmer of hope for young job seekers in the Northern Cape, as the youth unemployment rate (15-34 years) dropped significantly from 44.7% in Q3 to 36.3% in Q4.
The most substantial decline was recorded in the 15-24 age group, where unemployment fell from 57.1% to 42.8% (a 14.3 percentage-point decrease). Meanwhile, unemployment among the 25-34 age group dropped from 38.9% to 33.2%, a 5.7 percentage-point decline.
The Not in Employment, Education, or Training (NEET) rate for youth in the province also improved, with figures showing:
- 15-24 years: NEET rate of 37.0% (a decrease from Q3)
- 25-34 years: NEET rate of 50.1% (a decrease from Q3)
- Overall youth NEET rate: 43.8%
Gender Disparity in Employment
Despite the overall improvement in employment, women in the Northern Cape remain more vulnerable to joblessness. The expanded unemployment rate for females was recorded at 42.9%, compared to 37.0% for males.
While both male and female unemployment rates decreased from the previous quarter, the figures highlight the ongoing gender disparity in the job market, which remains a key challenge for economic inclusivity in the province.
How the Northern Cape Compares to Other Provinces
The Northern Cape led the country in terms of unemployment rate reduction, with a 3.0 percentage-point decline, followed by:
- KwaZulu-Natal (-2.6 percentage points)
- Mpumalanga (-1.5 percentage points)
Conversely, three provinces recorded increases in their unemployment rates:
- North West (+4.5 percentage points)
- Free State (+1.9 percentage points)
- Gauteng (+0.4 percentage points)
Meanwhile, the Western Cape remained unchanged in its unemployment rate.
Formal vs Informal Employment Trends
The latest statistics show that employment in the formal sector in the Northern Cape increased by 11,000 jobs, bringing the total to 246,000 employed persons. In contrast, employment in the informal sector declined by 6,000 jobs, reducing the total to 38,000 employed persons.
Challenges and Future Outlook
Although the job market in the Northern Cape has improved, several challenges remain. Uneven job growth across industries continues to be a concern, with significant employment gains in some sectors like agriculture and finance, while construction, community and social services, and private households recorded job losses.
Youth unemployment, despite its decline, remains high, particularly in the 15-24 age group. Many young job seekers still face barriers such as skills mismatches, lack of experience, and limited job opportunities. Gender disparities in employment also continue to persist, with female unemployment significantly higher than male unemployment.
The decline in informal sector jobs, which lost 6,000 positions, is another area of concern. Many workers in the Northern Cape rely on the informal economy for their livelihoods, and this decline may indicate increased economic precarity for small-scale traders and informal workers.
Looking ahead, economic experts suggest that sustained job creation in high-growth industries such as agriculture, finance, and transport will be crucial in ensuring long-term employment stability in the province. Expanding employment beyond traditional sectors by encouraging growth in renewable energy, digital services, and manufacturing could diversify job opportunities and make the local economy more resilient.
* For more information or to access the full report, visit Statistics South Africa’s official website. The report is available in PDF format here
Staff reporter
www.dfa.co.za
