South Africa Unemployment Rate Rises to 2022-Highs

South Africa’s unemployment rate rose to 33.6% in second quarter of 2026 from 32.7% in the first quarter, the highest since the second quarter of 2022. The number of unemployed people increased 4.2% to 8.481 million, while employment edged down 0.1% to 16.739 million. The labor force grew 1.3% to 25.220 million, although the participation rate slipped to 59.6%. The potential labor force, comprising people available but not seeking work or seeking work but unavailable, fell by 280,000 to 4.571 million, while those outside the labor force for other reasons increased by 72,000 to 12.519 million. Labor underutilization worsened, with the combined unemployment and time-related underemployment rate rising to 36.6% from 35.9%. The combined rate of unemployment and the potential labor force edged up to 43.8% from 43.7%, while the broader measure of labor underutilization remained at 46.3%.

South Africa’s unemployment rate rose to 32.7% in Q1 2026, up from 31.4% in Q4 2025. The number of unemployed people increased by 301,000 to 8.137 million, while employment fell by 345,000 to 16.754 million. The labor force participation rate declined to 59.0%, the lowest since 2022. The potential labor force, those available but not seeking work or unavailable but seeking it, grew by 240,000 to 4.851 million, while the number of people outside the labor force for other reasons decreased by 75,000 to 12.447 million, bringing the total outside the labor force to 17.298 million. Broader labor underutilization also worsened: the combined rate of unemployment and time-related underemployment rose by 1.6 pp to 35.9%, while the combined rate of unemployment and potential labor force increased by the same margin to 43.7%. The composite measure of labor underutilization, which includes time-related underemployment, unemployment, and the potential labor force, climbed 1.8 pp to 46.3%.

South Africa's unemployment rate fell to 31.4% in Q4 2025, from 31.9% in the previous period, marking the second consecutive decline. This was the lowest reading since Q3 2020, as the number of unemployed fell by 172,000 to 7.8 million and employed individuals rose by 44,000 to 17.1 million. The labor force decreased by 128,000 to 24.9 million. The number of persons employed in the formal sector increased by 320,000 in Q4 and those employed in the informal sector slipped by 293,000 over the same period. Seven of the 10 industries recorded job gains, led by community and social services (+46,000), construction (+35,000) and finance (+32,000). Conversely, declines occurred in trade (-98,000), manufacturing (-61,000), and mining (-5,000). The youth unemployment rate, measuring job-seekers between 15 and 24 years old, eased slightly to 57% from 58.5% in Q3, but remains stubbornly high.