South Africa's Unemployment Rate Rises to 33.7% in Third Quarter

South Africa's unemployment rate has ticked up to 33.7% in the third quarter of the year, according to the country's statistics agency, Stats South Africa. The rate is slightly higher than the 33.6% recorded in the second quarter. The increase in unemployment is attributed to job losses in private households, agriculture, and construction. The statistics agency's quarterly labour force survey covering July to September also reported that the working-age population grew by 117,000 or 0.3%.

The number of employed individuals in South Africa increased by 101,000 to 16.8 million, while the number of those without jobs grew by 97,000 to reach 8.6 million. Consequently, the labour force increased by 198,000 or 0.8% between the second and third quarters. The growth in the labour force is a positive indicator, but the increase in unemployment remains a concern. The country's economy has been struggling with subdued demand and a steep jump in input costs linked mainly to higher fuel prices.

Youth unemployment in South Africa remains a significant challenge, with a rate of 47.3% in the third quarter, although it edged 0.1 percentage point lower. The total number of young people aged 15-34 years with no jobs decreased by 23,000 to 5 million, while those with employment were down 5,000 to 5.5 million. The youth unemployment rate is still far outpacing the national rate, highlighting the need for targeted interventions to address this issue.

The report indicated job increases in finance, manufacturing, and mining. Finance added 111,000 jobs, manufacturing added 33,000, and mining added 31,000. However, there were losses in private households, agriculture, and construction. Private households shed 68,000 jobs, agriculture lost 34,000, and construction lost 8,000. The informal and household sectors experienced a decline in employment, while the formal sector expanded by 268,000 to 12.3 million.

Among the country's nine provinces, the Western Cape recorded the highest increases in employment at 48,000, followed by the North West, Eastern Cape, and Gauteng. However, job losses were recorded in the Free State and Mpumalanga. The Free State lost 34,000 jobs, and Mpumalanga lost 30,000. The provincial variations in employment trends highlight the need for targeted interventions to address regional disparities.

South African businesses have struggled to retain and add jobs this year due to subdued demand and higher input costs. The country's economy has been impacted by the US-Iran war, which led to a steep jump in fuel prices. The purchasing managers index recently published by S&P Global showed a drop in employment for the third successive month in October, with the rate of job-shedding being the sharpest in six years.

The jobless rate is likely to remain elevated in the last quarter of 2026, according to early indicators. The economy is expected to continue facing challenges, including subdued demand and higher input costs. The government and businesses will need to work together to address these challenges and create more job opportunities for South Africans.

Key points

• The unemployment rate in South Africa rose to 33.7% in the third quarter.
• Youth unemployment remains a significant challenge, with a rate of 47.3%.
• Job increases were recorded in finance, manufacturing, and mining.