South Africa’s unemployment crisis has intensified, with the national jobless rate climbing to 33.2% in the second quarter of 2025, according to the latest Quarterly Labour Force Survey (QLFS) from Statistics South Africa (Stats SA).
This marks a continued upward trend, rising from 32.9% in the first quarter of 2025 and significantly higher than the 31.9% reported at the end of 2024.
Workforce Growth vs Job Creation
Between April and June 2025, an additional 159,000 people entered the labour force. However, only 19,000 of those were able to secure employment, leaving 140,000 newly unemployed. Despite this, the number of discouraged work-seekers—those who have given up looking for work—declined by 28,000, while the count of those who were inactive for other reasons remained stable.
These shifts contributed to the 0.3 percentage point increase in the unemployment rate. Meanwhile, the expanded unemployment rate—which includes discouraged job-seekers—declined slightly by 0.2 percentage points, moving from 43.1% in Q1 to 42.9% in Q2.
Sector-Specific Employment Trends
Employment across various industries showed mixed results. The formal sector added approximately 34,000 jobs, while the informal sector saw a decline of 19,000 positions.
The most notable job gains were recorded in:
- Trade: +88,000 jobs
- Private Households: +28,000 jobs
- Construction: +20,000 jobs
On the flip side, several sectors experienced job losses:
- Community and Social Services: -42,000
- Agriculture: -24,000
- Finance: -24,000
- Transport: -15,000
- Utilities: -6,000
- Manufacturing: -5,000
Regional Employment Shifts
Employment trends varied significantly by province:
- Gauteng and Eastern Cape recorded notable increases in employment, with 95,000 and 89,000 more people working, respectively.
- In contrast, job losses were observed in the Western Cape (-117,000), KwaZulu-Natal (-86,000), and Northern Cape (-28,000).
Stats SA to Review Informal Sector Data
In response to ongoing concerns about the accuracy of unemployment data, particularly regarding the informal sector, Stats SA has announced upcoming revisions to its labour market data collection methods.
This decision follows consultations involving Minister in the Presidency Khumbudzo Ntshavheni, Statistician-General Risenga Maluleke, and key stakeholders, including National Treasury and former Capitec Bank CEO Gerrie Fourie.
Fourie previously suggested that unemployment figures may be overstated due to underreporting in the informal economy, proposing that the actual jobless rate could be closer to 10%, far below the current 33.2% headline figure.
While Stats SA defends its methodology, it acknowledged that improvements can be made. The agency is now considering the creation of a dedicated statistical register for informal businesses, which would enhance the depth and accuracy of future labour reports. This register could serve as a new data source alongside the QLFS and help build a more complete picture of the country’s labour market.
Current Informal Sector Landscape
As of the second quarter of 2025, Stats SA estimates that roughly 3.3 million people are employed in the non-agricultural informal sector, accounting for about 20% of total employment. The formal sector remains the dominant employer in South Africa, with private households and agriculture rounding out the remainder.
