By Zanoxolo Jozana
Economist Professor Jannie Rossouw has attributed South Africa’s persistently high unemployment rate to sluggish economic growth, saying the economy is not expanding fast enough to create jobs and absorb new entrants into the labour market.
Statistics South Africa’s latest Quarterly Labour Force Survey (QLFS) shows that the country’s unemployment rate increased marginally to 33.7% in the third quarter of 2026, from 33.6% in the previous quarter.
Speaking to Elvis Presslin, Rossouw, an economist and professor at Wits Business School, said accelerating economic growth was essential to creating jobs and reducing unemployment.
He said businesses needed an environment that allowed them to expand their operations and employ more people, but warned that this would also require government to address obstacles to investment, particularly at municipal level.
Rossouw said municipalities had a critical role to play in creating conditions conducive to investment by ensuring the reliable delivery of basic services.
“We need functioning municipalities. We need municipalities that can deliver basic services like clean water, uninterrupted electricity, streets without potholes, and working robots. This will create an environment at a local level where businesses will be interested in investing. In such an environment that’s conducive to investment, we will see employment of people,” he said.
He said reliable infrastructure and basic services were important for businesses to operate effectively and expand, while poor service delivery could discourage investment and limit economic opportunities in communities.
His remarks highlight the link between local government performance, business investment and employment, particularly as municipalities are responsible for providing essential services and maintaining infrastructure that support economic activity.
The latest unemployment figures reflect the continued pressure on the labour market, with millions of South Africans struggling to find work despite a marginal quarterly increase in the rate.
The challenge is particularly acute for young people entering the labour market, as the economy continues to struggle to generate sufficient employment opportunities.
Rossouw’s comments point to the need for faster economic growth, improved municipal service delivery and a more conducive investment environment to support job creation.
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