A decade of South African tax data shows that the formal economy is failing to create enough jobs to keep pace with population growth, highlighting the need for broader employment strategies beyond traditional economic policies. Between the 2013/14 and 2023/24 tax years, the country added an average of just 130,000 full-time equivalent jobs annually, while the number of unemployed job seekers rose to nearly 12 million. Younger workers have been disproportionately affected, with employment among those aged 15 to 35 remaining well below pre-pandemic levels. The analysis suggests that even 3% annual job growth, which would be considered very strong, would take over 50 years to meaningfully reduce unemployment, raising doubts about whether standard economic tools can solve a crisis of this scale. Proposed alternatives include expanding the informal sector, introducing a broader basic income grant, or launching large infrastructure and public employment programs. While each option carries significant fiscal costs, analysts say bold policy choices will be needed to address South Africa’s deepening jobs crisis.
The Conversation