In a welcome piece of economic news, South Africa’s official unemployment rate has fallen, declining by 1.3 percentage points to 31.9% in the third quarter of 2025. This improvement is thanks to the economy adding 248,000 jobs, pushing the total number of employed people to 17.1 million.
The latest data from Statistics South Africa’s Quarterly Labour Force Survey (QLFS) shows a notable shift, with the number of unemployed people decreasing by 360,000 to 8 million.
Sector-by-Sector: The Job Creators and Losers
The job gains were not evenly spread, revealing which parts of the economy are currently driving employment:
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Construction led the charge, creating a robust 130,000 new jobs.
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Community and Social Services (which includes government) was a strong second, adding 116,000 positions.
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The Trade sector also saw significant growth, employing an additional 108,000 people.
However, the picture was not positive for all industries. Manufacturing was hit hard, shedding 62,000 jobs, while the Finance sector lost 54,000 positions.
A New Way of Measuring the Labour Force
It’s important to note that Stats SA has introduced changes to how it reports labour force data. The category previously known as “Not Economically Active” has been renamed to “Outside the Labour Force.” This group now includes a more detailed sub-category called the “Potential Labour Force,” which aims to provide a clearer picture of those who are on the margins of the job market.
While the drop in the headline unemployment rate is an encouraging sign, the broader context remains challenging. The road to recovery is long, but the third-quarter figures offer a tangible sign that job creation is moving in the right direction, offering a measure of hope for millions of South Africans.
