According to the latest data from the Quarterly Labour Force Survey (QLFS), the first quarter of 2024 continued to build on gains from the end of 2023. Employment numbers showed an upward trajectory, increasing from 1,263,000 to 1,272,000, a 0.7% (9,000) rise, due to jobs being added in the manufacturing, private households, trade, construction, and electricity sectors. Meanwhile, the unemployment rate slightly decreased from 22.1% in 2023Q4 to 22.0% in 2024Q1, with a modest decrease of 1,000 in the number of unemployed individuals. The labour force participation rate saw a slight increase to 61.2%i n 2024Q1, up from 61.1% in the previous quarter, indicating that more people were either employed or actively seeking work. However, the rate of discouraged work-seekers rose significantly by 11.9%, adding 31,000 individuals, which highlights the ongoing challenges within the labour market that need to be addressed to fully leverage Durban’s economic potential.
The number of employed individuals increased significantly, rising from 1,220,000 in 2023Q1 to 1,272,000 in 2024Q1, marking a growth of 4.3% (52,000). Meanwhile, the number of discouraged work-seekers decreased by 7.5%, a reduction of 24,000, suggesting a slight improvement in the job market outlook despite an overall rise in unemployment. In contrast, the unemployment rate rose, increasing by 2.6% from 19.4% in 2023Q1 to 22.0% in 2024Q1 with the number of unemployed individuals growing by 65,000. The labour force participation rate saw a substantial increase of 3.5%, moving from 57.7%in 2023Q1 to 61.2% in 2024Q1.
In Durban, overall employment increased by 9,000 compared to the 44,000 increase observed in the previous quarter. The labour market witnessed notable quarter-on-quarter fluctuations. Employment increased particularly in the manufacturing sector (37,900), private households (11,800), trade (9,100), construction (5,300) and electricity (1,900). The recovery in trade and construction is notable, as both sectors experienced declines last quarter. However, this quarter the largest employment declines were observed in transport (21,000) and finance (19,000), both of which recorded the most employment gains in the previous quarter.
The year-on-year growth indicates a broad-based recovery in Durban's labour market, with increases observed in seven out of ten sectors. Overall employment increased by 52,000, with manufacturing showing the biggest recovery (18,700), followed by trade (16,600), transport (12,100), construction (10,200), private households (6,300), finance (6,100), and electricity (1,200).
Durban's labour market sustained its positive momentum from late 2023 into the first quarter of 2024, with employment rising by 9,000, a 0.7% increase, and a slight decline in the unemployment rate. Significant job gains were observed in manufacturing, private households, trade, and construction. However, the transport and finance sectors, which previously saw substantial gains, experienced the largest quarter-on-quarter declines. Year-on-year, the labour market demonstrated a strong recovery with a 52,000 increase in overall employment, primarily driven by manufacturing and trade. Despite these gains, the 11.9% rise in discouraged work-seekers indicates a need for targeted interventions to maximize Durban’s economic potential.
Statistics South Africa. (2024). Quarterly Labour Force Survey. (Online) https://www.statssa.gov.za/publications/P0211/P021141stQuarter2024.pdf
