Amid rising unemployment levels and a fluctuating job market, South Africa faces a pivotal moment. Discover how sector trends and regional disparities are shaping the nation’s employment landscape in the wake of governmental change.
Image: Henk Kruger/Independent Newspapers
South Africa is grappling with a grim economic reality as the country's unemployment rate has escalated to 33.2% in the second quarter of 2025, marking a 0.3 percentage point rise from the previous quarter's rate of 32.9%.
This latest figure, revealed in the Quarterly Labour Force Survey (QLFS) released by Statistics South Africa, is a stark reminder that the nation's unemployment crisis remains an urgent concern.
Statistics South Africa reported a mixed picture in the labour market during the second quarter.
While the number of employed individuals edged up by 19,000 to a total of 16.8 million, there was also a significant increase of 140,000 in the number of unemployed individuals, bringing the total to 8.4 million within the same period.
This juxtaposition has resulted in an overall increase of 159,000 in the labour force between April and June 2025.
Encouragingly, the report noted a decrease of 28,000 discouraged work-seekers, with the number of persons not actively seeking work for reasons other than discouragement remaining stable.
This shift led to a reduction of 28,000 in the not economically active population, now at 16.6 million.
In contrast, the expanded unemployment rate, which includes discouraged workers, showed a slight improvement, declining 0.2 percentage points to 42.9%, down from 43.1% in the first quarter. This nuanced statistic highlights ongoing challenges while offering a glimmer of hope for those previously deterred by intermittent job accessibility.
Delving into sector-specific employment trends, the formal sector saw an addition of 34,000 jobs, while the informal sector faced a downturn with a loss of 19,000 jobs. The largest sectoral gains came from the trade industry, which added an impressive 88,000 jobs, followed by private households and construction, which added 28,000 and 20,000 jobs, respectively. Conversely, sectors such as community and social services (42,000 jobs lost), agriculture (24,000), and finance (24,000) recorded notable employment decreases.
Regionally, Gauteng experienced a significant boost with 95,000 jobs added, alongside the Eastern Cape, which reported 89,000 new job opportunities.
However, the Western Cape saw the steepest declines, with 117,000 jobs lost, followed by KwaZulu-Natal and Northern Cape, where employment fell by 86,000 and 28,000, respectively. These disparities underscore the uneven nature of recovery across the country.
The current coalition government, formed after the African National Congress (ANC) lost its parliamentary majority in a recent election, continues to grapple with one of the highest unemployment rates in the world.
As the nation navigates these treacherous economic waters, all eyes will be on the strategies implemented to stimulate job creation and lower unemployment rates.
BUSINESS REPORT