South Africa’s unemployment rate declined slightly in the third quarter of 2025, driven by job gains in the construction, social services, and trade sectors. According to Statistics South Africa, the official jobless rate fell to 31.9% between July and September, down from 33.2% in the previous quarter.

The modest improvement marks a welcome shift, albeit with unemployment remaining above 30% – a level it first surpassed during the COVID-19 pandemic. Despite various government initiatives aimed at job creation, the rate has struggled to recover. Out of ten major industries tracked, six recorded employment growth, with the construction sector adding 130,000 new jobs, followed by community and social services with 116,000, and trade with 108,000.

The statistics agency attributed the updated employment figures to revised survey methods, aligned with International Labour Organization standards. Statistician Solly Molayi noted that the new approach helped capture more informal jobs, particularly in construction. Seasonal hiring trends also contributed to the decline in unemployment during the third quarter.

While South Africa’s economy showed signs of improvement in the second quarter, supported by improved electricity supply and reduced transport disruptions, overall growth remains weak. Economist Gina Schoeman emphasized the need for increased investment to drive job growth, stating that investment as a share of GDP must rise from 14% to around 16% to achieve sustained job growth.

The latest employment figures underscore the ongoing challenges facing South Africa’s labor market. With unemployment remaining a pressing concern, policymakers and business leaders will be watching closely for signs of sustained improvement. As the country seeks to revitalize its economy and create more jobs, the importance of investment and targeted initiatives will be crucial in addressing the persistent issue of high unemployment. According to additional sources, including Reuters, the road to recovery will require a multifaceted approach to drive growth and job creation.