The World's Highest Unemployment

Why South Africa's unemployment rate is above 30 percent, far higher than comparable countries, and the explanations economists offer.

South Africa has one of the highest unemployment rates in the world.

Numbers

The official unemployment rate has been above 30 percent in recent years.
Youth unemployment has exceeded 45 percent.

Why so high?

Apartheid geography: townships far from jobs, with costly transport.
Skills mismatch: poor schooling for many.
Small informal sector compared with other developing countries, partly due to past restrictions and crime.
Weak growth in labour-intensive sectors.
Labour market rigidities, a debated factor.
Energy shortages limiting growth.

Why it matters

Poverty and inequality persist.
Crime and social tension.
Fiscal pressure from grants.

Comparison

Many developing countries have large informal sectors that absorb workers. South Africa’s is small, so more people are fully unemployed.

Policy

Presidential Employment Stimulus programmes created public jobs, but structural fixes are slow.

The long commute

A young woman in a township lives 40 km from job areas. Taxi fares to search for work take much of any wage she might earn, discouraging job searches.

Thinking unemployment is high only due to laziness

Geography, skills and a small informal sector explain it.

Key takeaways

South Africa's unemployment exceeds 30 percent.
Youth unemployment exceeds 45 percent.
Apartheid geography and skills gaps contribute.
A small informal sector means more open unemployment.