Recently, the government met with the Capitec CEO over unemployment stats and informal employment in a critical discussion addressing concerns about South Africa’s official unemployment figures and the role informal employment plays in the economy. This meeting was aimed at bridging gaps in data collection and improving how informal workers are accounted for in official statistics.
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Official Unemployment Rate and Informal Employment
The government meets with the Capitec CEO over unemployment stats and informal employment partly because Statistics South Africa (Stats SA) reported an official unemployment rate of 32.9% for the first quarter of 2025. This figure, representing roughly 8.2 million unemployed South Africans, has raised questions about whether informal employment is fully captured.
Capitec CEO Gerrie Fourie suggested the real unemployment rate could be closer to 10% if informal workers, such as small-scale entrepreneurs and street vendors, were properly included in the data.
Capitec CEO’s Perspective
In the government meeting with the Capitec CEO over unemployment stats and informal employment talks, Fourie emphasised the vibrancy and importance of the informal economy. He said, “The informal market is vibrant and dynamic, but we believe this growth will only be achieved once the informal economy is properly understood and supported with the right policy frameworks, infrastructure, funding, and skills development” (citizen.co.za).
Government’s Response
During the government meeting with the Capitec CEO over unemployment stats and the informal employment meeting, Minister in the Presidency Khumbudzo Ntshavheni, Statistician-General Risenga Maluleke, and officials from Stats SA and National Treasury reiterated that the Quarterly Labour Force Survey follows International Labour Organisation standards and already includes informal and self-employed workers.
Maluleke highlighted, “We do not fix statistics to feel better about our reality. We reflect that reality to enable the country to make evidence-based decisions to change it.”
Exploring New Solutions Together
The government meets with the Capitec CEO over unemployment stats, and the informal employment dialogue resulted in an agreement to explore developing a statistical register for small-scale and informal businesses. This register will improve the quality and granularity of labour market data, supporting more targeted policy initiatives from the Department of Small Business Development.
Why Accurate Data Matters
The government meets with the Capitec CEO over unemployment stats and informal employment because accurate unemployment data is essential for creating effective policies that reflect South Africa’s economic realities. Underestimating informal employment risks misdirecting resources and missing opportunities for job creation.
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Looking Ahead
The government meeting with the Capitec CEO over unemployment stats and informal employment marks a constructive step toward more accurate labour market statistics. By combining government data with private sector insights, South Africa aims to craft policies that support all workers and encourage sustainable economic growth.