Can South Africa sustain its lowest unemployment rate in five years?
South Africa’s unemployment rate has fallen to its lowest level in more than five years, offering a sign that the continent’s largest economy may be stabilising after years of weak growth.
However, more than 30% of South Africans remain without jobs, keeping the country among those with the highest unemployment rates in the world. The latest figures nonetheless provide a boost to the government ahead of next week’s national budget presentation.
According to Statistics South Africa, net total employment rose by 21,000 in the final quarter of 2025 compared with the same period a year earlier. The biggest job gains were recorded in community and social services (46,000), construction (35,000) and finance (32,000).
Jobs declined in trade (98,000), manufacturing (61,000) and mining (5,000). A sharp loss of 293,000 informal jobs also kept overall unemployment high. Statistician-General Risenga Maluleke said many informal traders were removed from Johannesburg’s streets ahead of the G20 leaders’ summit in November, contributing to the decline.
Further, improved electricity supply and easing logistics bottlenecks have helped stabilise business conditions. Analysts expect inflation to moderate this year and next, with Morgan Stanley projecting possible interest rate cuts beginning next month and forecasting stronger growth in 2026.
The International Monetary Fund estimates South Africa’s economy will expand by 1.4% this year, slightly up from 1.3% in 2025, a modest improvement but still below levels needed to significantly reduce unemployment. An expanded definition of unemployment, which includes discouraged job seekers, edged down to 42.1%.
This story is written and edited by the Global South World team, you can contact us here.
