This report outlines eThekwini’s labour market performance in Q3 2024, providing an in-depth analysis of employment numbers, the unemployment rate, and the status of discouraged workers. The labour market indicators are also examined to paint a comprehensive picture of the current economic climate. The report further compares the top five metropolitan areas, offering context for eThekwini's performance relative to other major Metros. Through this analysis, we aim to highlight both the strengths and challenges within eThekwini’s labour market and provide insights into trends that may shape future economic strategies
According to the latest Quarterly Labour Force Survey (QLFS) from Statistics South Africa, eThekwini witnessed significant job creation in Q3 2024, adding 69,000 jobs quarter-on-quarter and 102,000 jobs year-on-year, marking the largest employment growth within the year and surpassing job gains in other major metropolitan areas. Tshwane added 41,556 jobs, and Cape Town gained 6,447 jobs. Meanwhile, Ekurhuleni saw a slight decline of 6,821 jobs, and Johannesburg experienced a significant loss of 115,930 jobs. The employment data from Q12024 to Q3 2024 reflects a steady trend of growth and recovery. Starting from1,273,000 in Q1 2024, employment numbers declined by 1.6% to 1,252,000 in Q2 and continued to climb by an additional 5.5% to reach 1,321,000 in Q3. This cumulative growth of approximately 4.6% in the first three quarters, indicates a resilient rebound, demonstrating the city's capacity to recover and adapt amid prior socio-economic challenges.
In Q3 2024, youth employment in eThekwini experienced substantial growth, with 46,168 new positions filled by the youth, representing approximately 67% of the total employment increase for the quarter. Among the youth age groups, the age of 30 made the largest contribution, adding 14,239 new jobs. This was closely followed by the age group 35, which saw an increase of 14,107 jobs, and age 26, which accounted for 8,930 additional positions.
The strong job growth in Q3 2024 highlights eThekwini's economic recovery, driven by targeted strategies that boosted job creation and workforce participation. This rise in employment aligns with positive economic indicators, including a business confidence index of 63 points and a 47% increase in approved building plans, signaling renewed investment. These trends suggest the Q3 2024 employment gains are part of broader economic revitalization. The city's ability to achieve this momentum underscores its resilience and commitment to supporting business growth and job creation. Despite past challenges, eThekwini has made significant progress, positioning itself as a leader in employment growth in 2024Q3.
Figure 1: EThekwini's employment numbers
Source: StatsSA Quarterly Labour Force Survey, 2024
The top employing sectors in Durban for Q3 2024 were wholesale and retail trade, community services, and financial intermediation. In this quarter, the community services sector saw significant job growth, adding 37,184 jobs compared to Q22024. The wholesale and retail trade sector also experienced a notable increase, with 45,503 additional jobs. The construction sector contributed positively with an increase of 8,944 jobs, while the agriculture sector saw a modest rise of 814 jobs. The financial intermediation sector recorded a growth of 3,396 jobs.
On the other hand, some sectors experienced job declines. The manufacturing sector saw a decrease of 13,444 jobs, while the private households sector lost 11,872 jobs. The transport sector faced a reduction of 2,428 jobs, and the electricity sector gained a slight increase of 1,024 jobs. The mining and quarrying sector remained unchanged during this period. Overall, total employment across all industries increased by 69,122 jobs in Q3 2024 compared to Q2 2024.
Figure 2: Job Creation by Sector
Source: StatsSA Quarterly Labour Force Survey, 2024
EThekwini's unemployment rate in Q3 2024 stood at 20.6%, reflecting a notable improvement compared to the previous quarter’s 23.0%. However, the decline in the unemployment rate does not solely indicate that more people were employed as there was also an increase in discouraged job seekers. The number of discouraged workers rose by 5.5% (25,000 individuals), increasing from 295,000in Q2 2024 to 320,000 in Q3 2024. This suggests that while the unemployment rate has improved, some of the reduction can be attributed to individuals exiting the active job market, emphasizing the need for continued efforts to engage and re-integrate these potential workers into the economy.
The youth unemployment rate in eThekwini has improved significantly over recent quarters, indicating positive progress for young job seekers. In Q3 2024, the rate fell to 31%, down from 34.1% in Q2 2024, continuing its decline from 32%in Q1 2024 and Q4 2023. This represents a notable decrease from 39% in Q3 2023 and 38% in Q2 2023, showcasing substantial progress over the past year.
This drop from 39% in Q3 2023 to 31% in Q3 2024 highlights the success of targeted youth employment initiatives, programs, and relevant policies. While these measures have improved job prospects and participation for young workers, the youth unemployment rate remains relatively high. Sustained, innovative strategies are necessary to further decrease youth unemployment and bolster skills development and job access in eThekwini.
Figure 3: EThekwini's unemployment rate
Source: StatsSA Quarterly Labour Force Survey, 2024
EThekwini experienced substantial job creation in Q3 2024, with an increase of 69,000 jobs quarter-on-quarter and 102,000 jobs year-on-year. This represents the highest employment growth within the year, surpassing that of other major metropolitan areas. The unemployment rate improved to 20.6% from 23.0% in the previous quarter, indicating positive job market momentum. However, this decline in unemployment is not solely due to job growth; it also reflects a 5.5% (25,000 individuals) rise in the number of discouraged job seekers, from 295,000 in Q2 2024 to 320,000 in Q3 2024.
This trend highlights the critical importance of fostering sustainable, long-term employment opportunities beyond temporary or construction-based roles. While the job gains are encouraging, the increase in discouraged workers highlights the need for comprehensive strategies that promote inclusive workforce participation and align job growth with the expanding labour force. The focus must be on creating diverse, and permanent job opportunities that engage and sustain the workforce, reducing the risk of long-term disengagement and supporting eThekwini’s continued economic stability and growth.
Statistics South Africa. (2024).Quarterly labour force survey. (Online) https://www.statssa.gov.za/?page_id=1854&PPN=P0211&SCH=73894
