Highlights
- South Africa’s unemployment rate has hit 32.9%
- The youth demographic, aged between 15 and 34, is particularly hard-hit, with their unemployment rate soaring to 4.8 million
- The current economic indicators pose a significant challenge to South Africa’s newly-formed coalition government
The economic landscape in South Africa is undergoing a challenging phase as unemployment rates have elevated steeply in the first quarter of 2025. As reported by the Quarterly Labour Force Survey (QLFS) from Statistics South Africa, the unemployment figures have reached an alarming level, with the number of unemployed individuals escalating to 8.2 million. This represents an increase of 237,000 from the previous quarter, raising the unemployment rate to 32.9%.
In the provincial breakdown, six out of nine provinces recorded significant rises in unemployment. KwaZulu-Natal suffered the most with a decrease of 104,000 in employment, followed by Eastern Cape with 83,000, Northwest with 57,000, Limpopo with 55,000, Mpumalanga with 43,000, and Northern Cape with 12,000 fewer jobs. However, the Western Cape bucked the trend, adding 49,000 jobs, exceeding expectations compared to Gauteng’s 9,000 and the Free State’s 4,000 increase.
Sector-wise, the trade industry faced the most profound impact, shedding 194,000 jobs. The construction, private households, and community and social services sectors also saw declines, with reductions of 119,000, 68,000, and 45,000 jobs, respectively. On a brighter note, sectors such as transport, finance, and utilities observed job gains, creating 67,000, 60,000, and 35,000 job opportunities, respectively.
The youth demographic, aged between 15 and 34, is particularly hard-hit, with their unemployment rate soaring to 4.8 million, adding 151,000 to the jobless count, and further reducing the number of employed youth to 5.7 million, a 46.1% employment rate.
Desiree Manamela, Chief Director of Labour Statistics at Statistics South Africa, expressed concern over the growing number of discouraged work-seekers. “The increase in discouraged work-seekers is a worry because we would want to see people being active in the labor market by either looking for employment or participating,” she stated at a press conference.
The current economic indicators pose a significant challenge to South Africa’s newly-formed coalition government, which faces mounting pressure to implement business-friendly policies and strategies to revitalize domestic demand and spur economic growth. The infrastructure and workforce exist, but a cohesive framework to effectively utilize these resources is urgently needed to mitigate the rising unemployment crisis.
As these developments unfold, public scrutiny of the government’s economic strategies intensifies, urging decisive action to steer South Africa towards a more prosperous and sustainable economic future. The call for innovative solutions and robust policy-making becomes increasingly crucial in addressing the unemployment crisis and fostering economic resilience in the nation.
