Business Report

Youth unemployment remains high as South Africa's job market struggles

Nicola Mawson|Published

South Africa's official unemployment rate has risen to 33.2% in the second quarter of 2025, up from 32.9% in the previous quarter.

Image: Henk Kruger/Independent Newspapers

According to the latest data from Statistics South Africa, the official unemployment rate has climbed to 33.2% in the second quarter of 2025, an increase from 32.9% in the previous quarter. This rise signifies the second consecutive quarterly uptick in the unemployment rate.

The number of unemployed individuals grew by 140 000 to reach 8.4 million, while employment saw a modest increase of 19 000, bringing the total number of employed persons to 16.8 million. The labour force expanded by 159 000, or 0.6%, during this period.

Youth unemployment remains a critical issue, with the number of unemployed individuals aged 15–34 increasing by 39 000 to 4.9 million. Despite a rise in employed youth by 31 000 to 5.7 million, the youth unemployment rate remained unchanged at 46.1%.

Despite the rise in the official unemployment rate, the expanded definition, which includes discouraged job seekers, showed a slight improvement. The expanded unemployment rate decreased by 0.2 percentage points to 42.9% in quarter-on-quarter.

Sectoral employment trends revealed mixed results. The formal sector experienced an increase of 34 000 jobs, while the informal sector saw a decline of 19 000.

Notable gains were observed in the trade sector (88 000 jobs), private households (28 000), and construction (20 000).

Conversely, employment losses occurred in community and social services (42 000), agriculture (24 000), finance (24 000), transport (15 000), utilities (6 000), and manufacturing (5 000).

Regional disparities were also evident. Gauteng and the Eastern Cape reported the highest increases in employment, with 95 000 and 89 000 additional jobs, respectively.

In contrast, the Western Cape, KwaZulu-Natal, and the Northern Cape experienced significant employment declines, with losses of 117 000, 86 000, and 28 000 jobs, respectively.

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