South Africa’s Unemployment Rate Drops to 31.4% in Q4 2025

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South Africa’s official unemployment rate declined by 0.5 percentage points, falling from 31.9% in the third quarter (Q3) of 2025 to 31.4% in the fourth quarter (Q4) of 2025.


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The latest figures were released in the Quarterly Labour Force Survey (QLFS) for Q4 2025 by StatsSA.

Employment Increases in Q4 2025

The data shows that the number of employed people increased by 44,000 to 17.1 million. At the same time, the number of unemployed people decreased by 172,000 to 7.8 million compared to the third quarter of 2025.

As a result, the overall labour force declined by 128,000 during the same period.

“During the same period, discouraged job-seekers increased by 233 000 to 3.7 million, other available job-seekers decreased by 110 000 to 855 000, and unavailable job-seekers decreased by 41 000 to 42 000, resulting in a total net increase of 82 000 to 4.6 million in the potential labour force population (i.e., persons who were available but not seeking or unavailable but seeking).

"Others outside the labour force increased by 165 000 to 12.5 million. Outside the labour force, which is the total of the potential labour force and others outside the labour force, increased by 248 000 to 17.1 million in Q4 of 2025,” Stats SA said on Tuesday.

Formal vs Informal Sector Employment

Formal sector employment rose by 320,000 in Q4 2025, while informal sector employment declined by 293,000 over the same period.

The industries that recorded the largest job gains were:

• Community and social services (46,000)
• Construction (35,000)
• Finance (32,000)

However, job losses were recorded in:

• Trade (98,000)
• Manufacturing (61,000)
• Mining (5,000)

Provincial Employment Trends

Employment growth was strongest in:

• Western Cape (93,000)
• Mpumalanga (37,000)
• North West (36,000)
• Northern Cape (17,000)

The largest employment declines were recorded in:

• Gauteng (54,000)
• KwaZulu-Natal (41,000)
• Eastern Cape (32,000)

Youth Unemployment Remains a Concern

Young people between the ages of 15 and 34 continue to face significant challenges in the labour market.

“The youth (15 – 34 years) remain vulnerable in the labour market. The results for the fourth quarter of 2025 show that the total number of unemployed youth decreased by 84 000 to 4.6 million compared with Q3: 2025, while employed youth recorded a decrease of 113 000 to 5.8 million.

“As a result, the youth unemployment rate increased by 0.1438 of a percentage point to 43.8% in the fourth quarter of 2025,” Stats SA said.

Labour Underutilisation Measures

In addition to the official unemployment rate (LU1), other indicators of labour underutilisation were measured:

• LU2 (unemployment plus time-related underemployment) decreased by 0.6 percentage points to 34.3%.
• LU3 (unemployment plus potential labour force) declined by 0.3 percentage points to 42.1%.
• LU4 (composite measure of labour underutilisation) stood at 44.5% in Q4 2025.

These expanded measures highlight the varying levels of labour market attachment and show that many South Africans remain either discouraged, underemployed, or marginally attached to the workforce.

While the slight decrease in the official unemployment rate offers some positive movement, youth unemployment and broader labour underutilisation remain significant challenges in South Africa’s economy.

Additional reporting from SAnews.gov.za

 

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