Saturday Star

Experts warn: South Africa's unemployment figures obscure serious economic disparities

Staff Reporter|Published

While South Africa's official unemployment rate dropped to 31.9% in the third quarter of 2025, critics argue that this figure belies a troubling reality marked by severe economic disparities across the nation.

Advocacy groups such as Free SA highlight that areas like the Eastern Cape are ensnared in escalating joblessness, a situation that the government appears to overlook amid supposed signs of recovery.

“This is not recovery; it’s triage,” asserted Reuben Coetzer, spokesperson for Free SA. “We cannot celebrate a national average that conceals staggering provincial disparities and a labour underutilisation rate of 42.4%. These numbers reveal an economy in distress, not one on the mend.”

According to the latest statistics from the Quarterly Labour Force Survey (QLFS) by Statistics South Africa, the Eastern Cape suffers the highest unemployment rate in the country, now at 41.2%, an increase from 39.5% in the previous quarter. I is explained that this uptick signals that the national strategy to address unemployment is failing many regions.

In contrast, although Limpopo has shown a decrease in unemployment figures, it is essential to understand this decline in the context of the economic cycles characteristic of that province.

“South Africa is not one economy; it’s many. National policy that ignores provincial realities is not just inefficient; it’s destructive. The Eastern Cape’s economic isolation is a national emergency, and it demands bold, localised solutions,” he said.

To combat this crisis, the organisation advocates for decentralised economic policy-making and increased autonomy for provinces, enabling them to tackle local challenges and leverage regional opportunities effectively.

“When almost half the potential workforce is sidelined, the system isn’t malfunctioning; it’s broken. This level of exclusion should be treated as an economic state of emergency. We must not mistake motion for momentum. Gains in sectors like construction and trade are welcome, but they’re insufficient to reverse years of stagnation and policy failure.”

Echoing these sentiments, Abigail Moyo, spokesperson for the trade union UASA, pointed out potential inconsistencies in the data. She indicated that recent adjustments to the definitions and methodologies used by Stats SA may distort the clarity of labour market conditions.

“The Q3:2025 estimates on informal employment cannot be compared with previous estimates. Although UASA is pleased with the increase in employed persons to 17.1 million, more rigorous efforts are necessary to draw the unemployed back into the formal labour market so they can support their families, particularly in the Eastern Cape,” she noted.

Moyo further highlighted that despite these positive changes, entrenched social and economic issues persist, including sluggish economic growth, high crime rates, inequality, and faltering infrastructure. She urged for collaboration between the government, industry leaders, and other stakeholders to develop more sustainable job opportunities.

Saturday Star