SA's unemployment rate drops to lowest level in nearly a year, but constraints remain

Country's official unemployment rate is now at the lowest level in nearly a year, as 248 000 more people have found work

- YOGASHEN PILLAY

SOUTH Africa's official unemployment rate fell to 31.9% in the third quarter of 2025, the lowest level in nearly a year, as 248 000 more people found work between July and September.

This jobless rate the lowest level since the fourth quarter of 2024, falling from 33.2% in the second quarter of 2025, marking the first decline this year.

Statistics South Africa (Stats SA) Quarterly Labour Force Survey (QLFS) on Tuesday reported that the number of employed persons increased to 17.1 million, while the number of unemployed persons decreased by 360 000 to eight million between the second and third quarters of the year.

As a result, the overall labour force shrank slightly by 112 000 (0.4%), while the number of discouraged work-seekers rose by 36 000 to 3.5 million.

Other available jobseekers increased by 130 000 to 965 000, and unavailable jobseekers by 64 000 to 83 000, leading to a net rise of 230 000 in the potential labour force population, now totalling 4.5 million.

These shifts saw the official unemployment rate drop by 1.3 percentage points, while the expanded unemployment rate — which includes discouraged jobseekers — decreased by 0.6 percentage points to 42.4%.

While the the third quarter labour data offers a rare boost of optimism for South Africa's sluggish economy, experts agree that the recovery remains fragile and uneven as millions remain unemployed.