South Africa’s jobs bloodbath deepens as major companies exit and retrench

SOUTH Africa’s job blood bath continues unabated.

- HOPE NTANZI

New data, released by Statistics South Africa’s Quarterly Labour Force Survey, reveals a staggering loss of 291000 jobs in the first quarter of 2025.

The formal sector was hit hardest: trade shed 194000 jobs, construction lost 119000, mining declined by 35 000, private households cut 68 000 positions, and community and social services fell by 45000.

Some sectors defied the trend, with the informal sector adding 17000 jobs and agriculture growing by 6000.

As a result, the official unemployment rate jumped one percentage point to 32.9%, leaving 8.2 million South Africans without work.

The expanded unemployment rate, which includes discouraged job seekers, climbed to 42.9%, leaving more than 8.3m people officially unemployed and a staggering 25m working-age South Africans currently not in any form of employment.

Youth unemployment remains particularly alarming, reaching 46.1% in 2025, with around 4.8m young South Africans aged 15-34 out of work.

When including discouraged work-seekers, the expanded unemployment rate has climbed to 43.1%, indicating that nearly half of the working-age population was either unemployed or not actively seeking employment.

Economist Azar Jammine attributes the surge in unemployment to years of stagnant growth and persistent structural issues.

“They don't just leave after a bad year or two,’ he said, referring to the increasing exit of multinational companies. “But when there's no light at the end of the tunnel, companies eventually decide it’s time to go”