South Africa’s unemployment rate drops slightly to 31.9%

South Africa’s unemployment rate edged down in the third quarter of 2025, helped by job gains in construction, social services, and trade, the national statistics agency said on Tuesday.

According to Statistics South Africa, the official jobless rate fell to 31.9% between July and September, from 33.2% in the previous quarter.

Although the decline marks a modest improvement, unemployment remains above 30% — a level it first crossed during the COVID-19 pandemic and has struggled to recover from despite various government job creation efforts.

Out of ten major industries tracked, six recorded employment growth. The biggest gains came from construction (130,000 new jobs), followed by community and social services (116,000) and trade (108,000).

Stats SA said it had updated its employment survey methods to align with International Labour Organization standards. Statistician Solly Molayi explained that the revised approach helped capture more informal jobs, especially in construction.

Officials also noted that unemployment often trends lower in the third quarter due to seasonal hiring.

While South Africa’s economy showed signs of improvement in the second quarter — supported by better electricity supply and fewer transport disruptions — overall growth remains weak.

Citi economist Gina Schoeman said the country needs higher investment levels to make a real impact on unemployment. “To see sustained job growth, investment as a share of GDP must rise from 14% to about 16%,” she said. “You can’t grow jobs without expanding business investment.”