South Africa’s unemployment rate has declined to 31.9%, marking a 1.3 percentage point drop from the previous quarter, according to the latest Stats SA Quarterly Labour Force Survey (QLFS) for the third quarter of 2025.
The report shows that 248,000 new jobs were created between July and September 2025, building on the 19,000 jobs added in the previous quarter.
The number of unemployed people decreased by 360,000 during the same period, bringing the total to eight million, while the combined rate of unemployment and potential labour force fell by 0.6 percentage points to 42.4%.
Employment growth was led by the construction, services, and trade industries, with the Western Cape and KwaZulu-Natal recording the largest gains.
The Eastern Cape was the only province to record a decline in employment.
According to the data, the number of people outside the labour force increased by 239,000 compared to the second quarter, while the labour force participation rate dropped slightly by 0.5 percentage points to 59.7%.
Despite this, the overall employment trend remains positive, with the latest figures showing an ongoing recovery in several key sectors.
The graduate unemployment rate also showed improvement, dropping from 12.2% in Q2 to 10.4% in Q3.
However, youth unemployment remains a major concern. The jobless rate for people aged 15–24 years stands at 58.5%, while those aged 25–34 years face an unemployment rate of 38.4%.
Approximately 3.5 million out of 10.3 million young people aged 15–24 are not in employment, education, or training (NEET), although this rate has decreased slightly by 0.3 percentage points year-on-year.
The Stats SA data further showed that discouraged job seekers make up 76.8% of the potential labour force. The North West recorded the highest combined rate of unemployment and potential labour force at 52.5%, followed by the Eastern Cape at 50.2%.
Over the past decade, the unemployment rate in the Western Cape has consistently remained below the national average, while the Eastern Cape has continued to record some of the highest unemployment levels in the country.
Racial disparities also persist, with the unemployment rate among black Africans at 35.8%, higher than the national average and significantly above that of other population groups.
The decline in unemployment points to a gradual progress in the labour market, though analysts caution that sustained job creation and youth-focused employment strategies will be key to maintaining momentum into 2026.
