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

South Africa’s unemployment rate has declined to 31.4% in the fourth quarter (Q4) of 2025, down from 31.9% in Q3 2025. This marks the second consecutive quarterly decline and the lowest unemployment rate since Q3 2020.

While the improvement offers cautious optimism for the economy, millions of South Africans, especially young people are still struggling to find work.

Here’s a breakdown of the latest labour market data and what it means for you.

Key Labour Market Highlights – Q4 2025

According to the latest figures:

• Unemployment rate: 31.4% (down from 31.9%)
• Number of unemployed people: 7.8 million (down by 172,000)
• Number of employed people: 17.1 million (up by 44,000)
• Total labour force: 24.9 million (down by 128,000)

This means fewer people were actively looking for work during the quarter, which contributed to the overall drop in the unemployment rate.

What the 31.4% Unemployment Rate Actually Means

An unemployment rate of 31.4% means that nearly 1 in every 3 South Africans who are actively looking for work cannot find a job.

For Someone at Home, This Means:

• Some people found jobs, but not enough to dramatically change the job market.
• Some people stopped looking for work altogether, which also affects the unemployment rate.
• Competition for jobs remains extremely high.

A decline of 0.5 percentage points is progress but it does not mean jobs are suddenly easy to find.

Formal Sector Gains, Informal Sector Declines

One of the most notable trends in Q4 2025 is the shift between formal and informal employment.

• Formal sector jobs increased by 320,000
• Informal sector jobs declined by 293,000

This suggests that while more stable, registered jobs were created, many workers in informal or small-scale businesses may have lost income opportunities.

• For job seekers, this could signal:

• A need to upskill for more secure roles

• Better opportunities in structured industries

• Increased competition for formal employment

Industries That Created Jobs

Seven out of ten industries created jobs. Here’s what that looks like in practical terms:

Community & Social Services (+46,000 jobs)

This includes:

• Teachers
• Healthcare workers
• Social workers
• Government service roles

Growth here may reflect:

• Increased public sector hiring
• Healthcare system expansion
• Education sector needs

If you have qualifications in education, health, or public administration, this is a sector to watch.

Construction (+35,000 jobs)

Construction growth often signals:

• Infrastructure projects
• Housing developments
• Public works programmes

For artisans, general workers, and skilled tradespeople, this is encouraging.

However, construction jobs can be:

• Contract-based
• Project-dependent
• Vulnerable to economic slowdowns

Finance (+32,000 jobs)

This includes:

• Banking
• Insurance
• Accounting
• Business services
• Call centres

Finance growth may mean:

• Expansion in corporate services
• Increased demand for administrative staff
• Growth in digital and financial technology services

For graduates with commerce or admin qualifications, this sector offers opportunity, but competition is strong.

Industries That Lost Jobs – A Warning Sign

While some industries grew, others experienced significant declines.

Trade (-98,000 jobs)

This is one of the biggest concerns.

Trade includes:

• Retail workers
• Shop assistants
• Cashiers
• Wholesale employees

When trade jobs decline, it often signals:

• Reduced consumer spending
• Financial pressure on households
• Struggling small businesses

Many entry-level workers depend on retail jobs. A decline here hits youth and low-skilled workers hardest.

Manufacturing (-61,000 jobs)

Manufacturing losses may reflect:

• Load shedding challenges
• Global economic pressures
• Rising production costs

This affects factory workers, machine operators, and production staff.

Mining (-5,000 jobs)

Mining is historically a key employer in South Africa. Even small declines in this sector can have major impacts on mining communities.

Youth Unemployment Still Critically High

Although overall unemployment declined, youth unemployment remains alarmingly high.

The unemployment rate for young people aged 15–24 years eased slightly:

• Q3 2025: 58.5%
• Q4 2025: 57%

While this is a marginal improvement, more than half of young job-seekers remain unemployed.

This highlights ongoing challenges such as:

• Limited work experience
• Skills mismatches
• Barriers to entry-level employment
• Slow economic growth

Learn More: Is Freelancing a Viable Career Path in 2026?

What This Means for South African Job Seekers

The drop to 31.4% is positive, but the labour market is still fragile.

Here’s what job seekers should take from this update:

Focus on Growing Sectors

Consider opportunities in:

• Construction
• Community and social services
• Finance and administration

Short courses, learnerships, and internships in these sectors could improve your chances.

Strengthen Your CV for Formal Sector Roles

Since formal jobs increased significantly, ensure:

• Your CV is ATS-friendly
• You highlight measurable achievements
• You include relevant certifications

Youth Should Target Skills-Based Opportunities

With youth unemployment still above 57%, young job seekers should:

• Apply for government-backed programmes
• Consider TVET college qualifications
• Explore entrepreneurship or digital freelancing

Related: Register for Services SETA Funded Training Opportunities 2026

Is the Trend Sustainable?

While two consecutive quarters of decline are encouraging, South Africa’s unemployment rate remains among the highest globally.

Sustained improvement will depend on:

• Economic growth
• Investment in infrastructure
• Small business support
• Skills development programmes

The Bigger Picture

Even at 31.4%, South Africa still has 7.8 million unemployed people. The marginal improvements are welcome, but structural challenges remain.

The shift toward formal sector growth is a positive sign, but more inclusive job creation is needed, especially for youth and informal workers.

For job seekers, the message is clear:

• Target sectors that are hiring
• Upskill strategically
• Stay informed about labour market trends

The recovery may be gradual, but preparation and persistence will be key in navigating 2026’s job market.