South Africa’s official unemployment rate dropped to 31.9% in the third quarter of 2025, according to the latest Quarterly Labour Force Survey (QLFS) released by Statistics South Africa.
The data shows encouraging signs in the labour market, with the number of employed people increasing by 248 000 to reach 17.1 million. At the same time, the number of unemployed individuals fell by 360 000 to 8 million. This change led to a 0.4% decrease in the total labour force compared to the second quarter of 2025.
While employment figures improved, the number of discouraged jobseekers rose by 36 000 to 3.5 million. Other jobseekers available for work increased by 130 000 to 965 000, and unavailable jobseekers climbed by 64 000 to 83 000. This brought the total potential labour force to 4.5 million, marking a net increase of 230 000 people. Overall, those outside the labour force grew by 239 000 to reach 16.9 million in the third quarter.
These changes contributed to a 1.3 percentage point drop in South Africa’s official unemployment rate — down from 33.2% in the second quarter of 2025.
In terms of industries, the biggest job gains were seen in:
- Construction: +130 000 jobs
- Community and Social Services: +116 000 jobs
- Trade: +108 000 jobs
However, some sectors saw declines, including Manufacturing (-62 000), Finance (-54 000), and Utilities (-30 000).
The latest QLFS also introduced revised definitions of formal and informal employment in line with international standards, meaning the new estimates cannot be directly compared with previous data. For Q3 2025, approximately 12 million people were employed in the formal sector, 4 million in the informal sector, and 1.1 million in private households.
Employment increased in eight of South Africa’s nine provinces during this period. The largest gains were recorded in:
- Western Cape: +70 000
- KwaZulu-Natal: +54 000
- Gauteng: +51 000
- North West: +42 000
- Limpopo: +40 000
The only province to experience a decline in employment was the Eastern Cape, where 53 000 jobs were lost.
Overall, the latest figures suggest a positive shift in South Africa’s labour market, with more people finding work and fewer counted among the unemployed — though challenges such as underemployment and discouraged jobseekers continue to affect millions of South Africans.
