Quarterly Labour Force Survey (QLFS) Q4: 2025, released on Monday, shows that South Africa added 44 000 jobs in the final quarter of 2025, while the number of unemployed fell by 172 000 to 7.8 million.
The official unemployment rate dropped from 31,9% in the third quarter to 31.4%, though the total labour force contracted by 128 000 over the same period.
While these figures suggest modest improvements, the survey highlights ongoing structural challenges in the labour market, particularly for young people. Youth unemployment, for those aged 15 - 34, edged up slightly to 43,8% despite a decrease of 84 000 in the total number of unemployed youth. At the same time, youth employment fell by 113 000 to 5.8m, indicating that opportunities for first-time jobseekers remain limited.
Labour force participation showed mixed trends. Discouraged job-seekers increased by 233 000 to 3.7m, while other available job-seekers dropped by 110 000 to 855 000 and unavailable job-seekers fell by 41 000 to 42 000. This resulted in a net rise of 82 000 in the potential labour force, bringing it to 4.6m. Meanwhile, the “other outside the labour force” category rose by 165 000 to 12.5m, taking the total outside the labour force to 17.1m.
Measures of labour underutilisation also showed slight improvements. The combined rate of unemployment and time-related underemployment (LU2) fell to 34.3%, while the broader measure including potential labour force (LU3) decreased to 42.1%. The composite measure (LU4), which considers underemployment, unemployment, and the potential labour force, stood at 44.5%.
Employment gains were concentrated in the formal sector, which added 320 000 jobs. Conversely, informal sector employment declined by 293 000. By industry, the largest increases were seen in community and social services (+46 000), construction (+35 000), and finance (+32 000). Meanwhile, trade (-98 000), manufacturing (-61 000), and mining (-5 000) saw job losses.
Regional disparities were also evident. The Western Cape (+93 000), Mpumalanga (+37 000), North West (+36 000), and Northern Cape (+17 000) recorded employment growth. In contrast, Gauteng (-54 000), KwaZulu-Natal (-41 000), and Eastern Cape (-32 000) experienced the largest declines.
Experts warn that while national figures show improvement, many young South Africans continue to face significant barriers to employment.
“For many young South Africans, unemployment is not just an economic statistic – it is a daily lived reality,” said Dr Memuna Williams, founder and CEO of Empowering Sustainable Change.
“When young people leave school without relevant skills, work exposure, or pathways into entrepreneurship, the risk is that talent goes unused and confidence in the future erodes.”
With nearly one in two young people unable to find work or training, and an additional one million young South Africans expected to leave school by the end of 2026, Williams warned that the labour market is under increasing pressure.
“We cannot measure success only by small movements in national aggregates while so many young people are still waiting for their first real opportunity,” she said.
“Inclusive growth depends on whether young people are equipped and supported to participate in the economy.”
BOSA's Roger Solomons, said the expanded definition of unemployment at 42,1% is among the highest in the world. “Almost half of young people aged 15 - 34 are now jobless. Once someone struggles to find a job after school, they are likely to remain unemployed for an extended period,” he said.
Solomons added that weak basic education compounds the problem. “A matric pass can be obtained by passing three subjects at 30% and three at 40%, essentially a 35% aggregate, while the actual pass rate is around 50% when considering dropouts. Only through rigorous oversight, data-driven policy, and leadership focused on South Africans can we unlock inclusive economic growth and real job creation.”
He highlighted BOSA’s Plan for Prosperity, a detailed blueprint aimed at growing the economy by 5% and generating meaningful employment, which the organisation plans to push through Parliament in the coming months.
Saturday Star