South Africa’s unemployment rate fell slightly in the third quarter of 2025, driven by job gains in construction, social services and trade. Statistics South Africa reported that the official jobless rate dropped to 31.9 % between July and September, down from 33.2 % in the previous quarter. Although the improvement is modest, unemployment remains above 30 %—a level first exceeded during the COVID‑19 pandemic—and has struggled to recover despite various government job‑creation initiatives.
Six of the ten major industries tracked recorded employment growth. The construction sector added the most jobs, with 130,000 new positions, followed by community and social services (116,000) and trade (108,000). The agency attributed the updated figures to revised survey methods that align with International Labour Organization standards. Statistician Solly Molayi noted that the new approach captured more informal jobs, particularly in construction, while seasonal hiring trends also helped lower unemployment in the third quarter.
The economy showed signs of improvement in the second quarter, supported by a more reliable electricity supply and fewer transport disruptions, but overall growth remains weak. Economist Gina Schoeman stressed that increased investment is essential for job creation, arguing that investment as a share of GDP must rise from 14 % to around 16 % to sustain growth.
The latest employment data highlight the persistent challenges in South Africa’s labour market. With unemployment still a pressing concern, policymakers and business leaders will be watching closely for signs of sustained improvement. Revitalising the economy and creating more jobs will require a multifaceted approach, with investment and targeted initiatives playing a crucial role in addressing the country’s high unemployment rate.
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