From 8 Million to 12 Million: Expert Reveals the Scale of South Africa's Unemployment Problem

• A Wits University researcher says South Africa's unemployment crisis is now worse than the levels seen in the US and Britain during the Great Depression of the 1930s
• The country's expanded unemployment rate has remained around 40%, with millions of South Africans struggling to find work
• The expert warns that even strong economic growth could take decades to significantly reduce unemployment

SOUTH AFRICA - South Africa's unemployment crisis has reached extremely high levels, even higher than those seen in countries like the United States and Britain during the Great Depression of the 1930s.

BusinessTech reported that Justin Visagie, an associate professor at the Southern Centre for Inequality Studies at University of the Witwatersrand said South Africans today have a lower chance of finding work than people did during one of the world's worst economic crises.

Unemployment increased from 8 million to 12 million

Using tax data collected over the past decade, Visagie found that South Africa's job market is under severe pressure. While only 130,000 formal jobs were created in the last 10 years, the number of unemployed people looking for work increased from 8 million to 12 million during the same period.

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Speaking on The Money Show, Visagie said the numbers are worrying and do not make sense. He explained that South Africa's unemployment crisis has reached a level rarely seen anywhere in the world.

To highlight the seriousness of the situation, he compared South Africa's unemployment rate to that of the US and Britain during the Great Depression. At the height of that crisis in 1933, unemployment in those countries was between 20% and 25%.

In South Africa, however, the expanded unemployment rate, which includes people who have stopped looking for work because they have lost hope, has remained around 40% since the Covid-19 pandemic.

Statistics show the magnitude of the unemployment problem

Recent figures from Statistics South Africa show that the official unemployment rate increased to 32.7% in the first quarter of 2026. More than 8.1 million people are unemployed, while the expanded unemployment rate stands at 43.7%.

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Visagie said the problem is so large that South Africa would need to double the size of its formal economy just to begin solving it. He added that even strong economic growth would not create enough jobs for millions of unemployed South Africans within their lifetimes.

One reason for the crisis is the structure of the country's labour market. In many developing countries, informal businesses help provide work for people who cannot find formal jobs. However, South Africa's informal sector is much smaller and does not absorb enough workers.

Young people are among the hardest hit. Unemployment among South Africans aged 15 to 34 is 45.8%, and many young workers have struggled to recover from the effects of the pandemic.

Visagie warned that long periods without work can have lasting consequences for young people, making it more difficult for them to find stable employment in the future.

According to Visagie, even if the economy grows and creates more jobs, it could take around 20 years to significantly reduce unemployment.

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COSATU calls Ramaphosa to deal with unemployment

In related news, COSATU says it stands with millions of workers who are struggling and expects President Cyril Ramaphosa to address their problems in the State of the Nation Address (SONA) on Thursday, 12 February 2026.COSATU welcomed signs that the economy is starting to recover after years of state capture and corruption. However, it warned that growth of only one per cent and unemployment of 42 per cent are still too high and need urgent action.

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Nkosazana Dlamini-Zuma speaks on unemployment

Briefly News reported that the former African Union (AU) chairperson and African National Congress (ANC) veteran, Nkosazana Dlamini-Zuma, said South Africa’s unemployment crisis is driven by a lack of technical skills among educated individuals. She spoke about the 8.1-million unemployed citizens, noting that while many individuals are educated, they lack the specific skills modern industries require. Dlamini-Zuma focused on practical training and said that without specific technical proficiencies, young people are unlikely to secure jobs or successfully establish their own businesses.

Source: Briefly News