JOHANNESBURG, Feb 17 – South Africa recorded a modest improvement in its labour market in the final quarter of 2025, with the official unemployment rate declining to 31.4%, marking its lowest level in more than five years.
New data released by Statistics South Africa showed the jobless rate fell from 31.9% in the third quarter, reflecting gradual employment gains across several sectors of the economy. While the improvement signals incremental progress, unemployment remains structurally elevated and among the highest globally.
Employment growth during the quarter was concentrated in community and social services, which added approximately 46,000 jobs. The construction sector followed with 35,000 new positions, while the finance industry contributed an additional 32,000 roles, underscoring resilience in service-driven segments of the economy.
However, gains in formal employment were partly offset by losses elsewhere. The trade sector shed nearly 98,000 jobs, while manufacturing and mining recorded declines of 61,000 and 5,000 positions respectively, highlighting ongoing pressure in traditional industrial sectors.
A significant drag on overall labour market recovery was the contraction in informal employment. Nearly 293,000 informal jobs were lost during the quarter, reflecting both regulatory actions and structural vulnerabilities within the informal economy. Informal traders in Johannesburg were among those affected during preparations linked to the Group of 20 summit, contributing to the decline.
Broader measures of labour underutilisation also showed slight improvement. The expanded unemployment rate, which includes discouraged job seekers and others marginally attached to the workforce, declined to 42.1%.
The data suggests improving economic conditions, supported by more stable electricity supply and easing logistics disruptions.
However, these structural improvements have yet to translate into sustained, large scale job creation. Businesses remain cautious about expanding hiring amid global economic uncertainty and domestic growth constraints.
While the latest figures point to incremental recovery, South Africa’s labour market continues to face deep structural challenges. Sustained economic expansion, infrastructure investment, and private sector growth will be critical to achieving meaningful reductions in unemployment over the medium term.
