South Africa's unemployment rate worsens slightly to 33.7%

South Africa's unemployment rate has worsened slightly, rising to 33.7% in the third quarter of the year from 33.6% in the second quarter. According to Stats South Africa's latest quarterly labour force survey, the working-age population grew by 117,000 or 0.3%, while the number of employed individuals increased by 101,000 to 16.8 million. The number of those without jobs grew by 97,000 to reach 8.6 million.

The labour force in South Africa increased by 198,000 or 0.8% between the second and third quarters. Despite the slight increase in unemployment, youth unemployment remains a concern, edging 0.1 percentage point lower to 47.3% in the third quarter. This decrease was due to a 23,000 reduction in the number of young people aged 15-34 years without jobs, and a 5,000 decrease in those with employment.

The report indicated job increases in finance, manufacturing, and mining, with 111,000, 33,000, and 31,000 new jobs, respectively. However, there were significant job losses in private households, agriculture, and construction, with 68,000, 34,000, and 8,000 jobs lost, respectively. Employment in the informal and household sectors declined, while that in 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. In contrast, job losses were recorded in the Free State and Mpumalanga, with 34,000 and 30,000 jobs lost, respectively. These provincial variations highlight the uneven nature of employment trends across South Africa.

South African businesses have struggled to retain and add jobs this year due to subdued demand and a steep increase in input costs, mainly linked to higher fuel prices resulting from the US-Iran war. This challenging business environment is likely to impact employment trends in the last quarter of 2026.

An early indicator of the potential for continued joblessness is S&P Global's recently published purchasing managers index, which showed a drop in employment for the third successive month in October. The rate of job-shedding was the sharpest in six years, suggesting that the jobless rate may remain elevated.

The persistence of high unemployment underscores the need for effective strategies to address the challenges facing South Africa's labour market. As the country continues to navigate these challenges, the latest data provides valuable insights into the trends and patterns that will shape the country's employment landscape.

Key points

• The unemployment rate in South Africa rose to 33.7% in the third quarter.
• Youth unemployment edged 0.1 percentage point lower to 47.3% in the third quarter.
• Job increases were recorded in finance, manufacturing, and mining, while job losses occurred in private households, agriculture, and construction.