South Africa’s Jobless Rate Climbs to 33.2% as Economic Pressures Mount

South Africa’s unemployment rate ticked up again in the second quarter of 2025, reaching 33.2% from 32.9% in the first quarter. It is the second straight rise since the end of 2024 and the highest level since mid-last year, according to Statistics South Africa’s latest Quarterly Labour Force Survey.

The new figures mean about 8.4 million people are officially unemployed, despite a modest increase in total employment of 19,000 to 16.8 million. The labour force grew by 159,000, and the labour force participation rate nudged up to 60.2%. The absorption rate, the percentage of working-age people who are employed, dipped slightly to 40.2%.

Winners and losers in the job market

Jobs were added in the formal sector (up by 34,000), private households (28,000), construction (20,000), and mining (3,000). But these gains were overshadowed by losses in community and social services (42,000), finance and agriculture (24,000 each), and transport (15,000). Informal sector jobs fell by 19,000.

The expanded unemployment rate, which counts discouraged job seekers, eased slightly to 42.9% from 43.1% in the previous quarter, a small improvement that economists say hides deeper challenges.

Analysts warn of fading confidence

There had been cautious optimism earlier this year that the Government of National Unity (GNU) would boost investor confidence after the 2024 elections. Instead, says analyst Shawn Duthie of Control Risks, unemployment has climbed every quarter since the GNU was formed.

“This shows that investor confidence is much lower than initially thought, and business is still wary about going forward with long-term investments, which would necessitate more hiring,” he said.

Economist Casey Sprake of Anchor Capital added that South Africa’s economy is not growing fast enough to drive job creation. “Material job creation has only occurred when GDP growth approaches 3% per annum. Currently, businesses remain under significant pressure from the ongoing effects of loadshedding, which also weighs on jobs and the unemployment data.”

More pressure ahead

The economy grew by just 0.1% in the first quarter of 2025. That sluggish pace, coupled with fresh headwinds such as the United States’ new 30% tariffs on South African goods, is likely to hit jobs further, particularly in agriculture, vehicle manufacturing, and steel. Duthie warns that unemployment could rise again in the third quarter.

For South Africans already living with high joblessness, the latest numbers feel like more of the same. In many communities, precarious and low-skilled work is all that is available, leaving families vulnerable to poverty.

The challenge, say economists, is not just creating jobs, but creating stable, well-paying ones. And with growth forecast to remain below 2% for the foreseeable future, breaking the cycle of unemployment will require more than cautious optimism.

Also read: Paid Millions to Stay Home: Nelson Mandela Bay’s Costly Municipal Standstill

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Source: The Mail & Guardian

Featured Image: LaborIQ