JOHANNESBURG, Nov 10 – South Africa’s unemployment rate increased to 33.7% in the third quarter of 2026, with the number of unemployed people reaching 8.6 million, as growth in the labour force outpaced the expansion in employment.
Statistics South Africa’s latest Quarterly Labour Force Survey showed that the unemployment rate rose by 0.1 percentage point from the second quarter, despite the addition of 101,000 jobs during the period.
The number of employed people increased to 16.8 million, while unemployment rose by 97,000 to 8.6 million. The working-age population expanded by 117,000, or 0.3%, between the two quarters, contributing to an increase of 198,000 in the labour force, which reached a total of 25.4 million.
The labour force participation rate increased by 0.3 percentage point to 59.9%, while the employment absorption rate rose by 0.1 percentage point to 39.7%. The number of people outside the labour force declined by 82,000 to 17 million.
The potential labour force increased by 69,000, driven mainly by a rise in discouraged work-seekers, highlighting the continued difficulty many South Africans face in securing employment.
Broader labour underutilisation remains elevated
Beyond the official unemployment rate, broader measures point to persistent weaknesses in the country’s labour market.
Statistics South Africa reported that the labour underutilisation rate remained at 46.3%, unchanged from the previous quarter but 1.4 percentage points higher than in the third quarter of 2025.
The combined unemployment and time-related underemployment rate stood at 36.5%, while the combined unemployment and potential labour force rate reached 44%.
These indicators capture a wider range of labour market pressures, including people who are working fewer hours than they would prefer and those who are available for work but are not actively seeking employment.
Finance leads quarterly employment gains
Job creation during the quarter was concentrated in a limited number of industries, with the finance sector recording the largest increase.
Finance added 111,000 jobs between the second and third quarters, followed by manufacturing with 33,000, mining with 31,000 and community and social services with 20,000.
However, employment declined in other parts of the economy. Private households recorded the largest quarterly loss, shedding 68,000 jobs, followed by agriculture with 34,000 and construction with 8,000.
The composition of employment also shifted. Formal employment increased by 268,000, while informal employment declined by 98,000 and private household employment fell by 68,000.
The figures indicate that gains in formal employment were partly offset by losses in informal businesses and household employment.
Annual employment figures show a weaker labour market
Compared with the third quarter of 2025, total employment declined by 215,000, or 1.3%, while the number of unemployed people increased by 571,000, or 7.1%.
Community and social services recorded the largest annual employment decline, losing 197,000 jobs. Private households shed 87,000 positions, construction lost 44,000 and trade declined by 33,000.
Finance recorded the largest annual employment gain, adding 132,000 jobs. Mining added 32,000, while transport employment increased by 11,000.
Occupational data also showed contrasting movements. Sales and services occupations recorded the largest quarterly increase, adding 131,000 jobs, followed by managers with 78,000 and professionals with 36,000.
By contrast, technician occupations lost 92,000 jobs. Elementary occupations declined by 32,000, while domestic worker positions fell by 31,000.
The latest figures underscore the uneven nature of South Africa’s employment recovery. Although selected industries generated jobs during the quarter, annual employment remained lower and broader labour underutilisation continued to affect a substantial share of the working-age population.
