SA’s Unemployment Rate Falls to 31.4% in Q4 2025, Youth Joblessness Still Deepens

South Africa's official unemployment rate declined slightly in the final quarter of 2025, offering a modest improvement in labour market conditions — though youth unemployment and labour underutilisation remain severe challenges.

According to the Quarterly Labour Force Survey (QLFS) released by Statistics South Africa (Stats SA), the official unemployment rate fell by 0.5 percentage points, from 31.9% in Q3 2025 to 31.4% in Q4 2025.

Employment Rises by 44,000 as Unemployment Drops by 172,000

The latest data shows:

• The number of employed persons increased by 44,000 to 17.1 million

• The number of unemployed persons declined by 172,000 to 7.8 million

This resulted in an overall decrease of 128,000 in the labour force over the quarter.

While the headline unemployment rate improved, Stats SA noted that the labour market remains under pressure, with many South Africans still unable to find sustainable work.

Discouraged Job-Seekers Increase to 3.7 Million

A major concern in the report is the sharp rise in discouraged job-seekers — individuals who have stopped actively searching for work.

Stats SA reported:

• Discouraged job-seekers increased by 233,000 to 3.7 million

• Other available job-seekers decreased by 110,000 to 855,000

• Unavailable job-seekers fell by 41,000 to 42,000

This led to a net increase of 82,000, bringing the potential labour force population to 4.6 million.

"Others outside the labour force increased by 165,000 to 12.5 million," Stats SA said, pushing the total number of people outside the labour force to 17.1 million.

Formal Sector Gains Offset by Informal Sector Decline

The survey revealed contrasting trends across sectors:

• Formal sector employment increased by 320,000

• Informal sector employment declined by 293,000

This shift suggests that while formal job creation improved, many informal livelihoods were lost during the same period.

Industries Showing Growth and Decline

The largest employment gains were recorded in:

• Community and social services: +46,000

• Construction: +35,000

• Finance: +32,000

However, major job losses occurred in:

• Trade: –98,000

• Manufacturing: –61,000

• Mining: –5,000

The decline in trade and manufacturing highlights ongoing structural weaknesses in key productive sectors.

Provincial Employment Trends Mixed

Employment growth was strongest in:

• Western Cape: +93,000

• Mpumalanga: +37,000

• North West: +36,000

• Northern Cape: +17,000

The largest declines were recorded in:

• Gauteng: –54,000

• KwaZulu-Natal: –41,000

• Eastern Cape: –32,000

These trends reflect uneven recovery patterns across provinces.

Youth Unemployment Climbs to 43.8%

Despite a decline in the total number of unemployed youth, youth employment also fell — worsening the youth unemployment rate.

Stats SA reported:

• Unemployed youth (15–34 years) decreased by 84,000 to 4.6 million

• Employed youth declined by 113,000 to 5.8 million

As a result, the youth unemployment rate rose slightly to 43.8% in Q4 2025.

"The youth remain vulnerable in the labour market," Stats SA warned.

Labour Underutilisation Remains Extremely High

Stats SA also published broader measures of labour underutilisation:

• LU2 (unemployment + time-related underemployment): 34.3%

• LU3 (unemployment + potential labour force): 42.1%

• LU4 (composite extended underutilisation rate): 44.5%

These indicators capture the wider reality of South Africans who are unemployed, discouraged, or unable to secure enough working hours.

Outlook: Modest Gains, Deep Structural Challenges Persist

While the decline in the official unemployment rate signals slight progress, the rise in discouraged job-seekers, the contraction in informal work, and the persistently high youth unemployment rate underscore the depth of South Africa's employment crisis.

The QLFS results highlight the urgent need for sustained economic growth, labour-intensive investment, youth-targeted job programmes, and structural reforms to absorb millions of jobless South Africans into meaningful employment.