South Africa’s official unemployment rate has risen once again, hitting 33.2% in the second quarter of 2025, up from 32.9% in Q1, according to the latest Quarterly Labour Force Survey (QLFS) released by Statistics South Africa (Stats SA) this week.
This marks the third consecutive quarterly increase in joblessness, with the data revealing that while 159 000 people joined the labour force between April and June, only 19 000 found employment, and a staggering 140 000 were added to the ranks of the unemployed.
Mixed signals in job market
The report shows that formal sector employment grew modestly by 34 000 jobs, but informal sector employment dropped by 19 000.
The industries that added the most jobs include:
- Trade: +88 000
- Private Households: +28 000
- Construction: +20 000
Sectors that lost jobs include:
- Community and Social Services: -42 000
- Agriculture & Finance: -24 000 each
- Transport: -15 000
Provinces show diverging trends
The biggest employment gains were seen in Gauteng (+95 000) and Eastern Cape (+89 000).
However, major losses were recorded in:
- Western Cape: -117 000
- KwaZulu-Natal: -86 000
- Northern Cape: -28 000
Stats SA considers major revisions
The worsening unemployment crisis has reignited debate over the accuracy of South Africa’s labour statistics – particularly regarding the informal sector, which critics argue is vastly undercounted.
Former Capitec Bank CEO Gerrie Fourie recently challenged Stats SA’s data, suggesting the true unemployment rate may be closer to 10% if informal work is fully accounted for.
In response, Stats SA announced plans to:
- Develop a statistical register of informal businesses
- Improve sampling and survey techniques to better reflect non-traditional employment
- Work with National Treasury and the Presidency to align reporting with real economic activity
Currently, informal sector employment is recorded at 3.3 million people, or around 20% of all employed South Africans.
Expanded unemployment dips slightly
While the official rate rose, the expanded unemployment rate, which includes discouraged jobseekers, fell slightly from 43.1% to 42.9%, as fewer people reported giving up on looking for work.
Outlook
The rise in unemployment underscores South Africa’s struggle to generate enough jobs for a growing population, amid stagnant economic growth and structural challenges.
With Stats SA now reviewing how it measures informal work, labour analysts say upcoming changes could dramatically reshape how the country understands and addresses unemployment.
The proposed updates are expected to be presented for review later this year.
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