SA’s Unemployment Rate Climbs to 32.9% Amid Job Losses in Key Sectors

Stats SA reported a sharp decline in employment figures, with the number of employed persons falling by 291,000, from 17.1 million in Q4:2024 to 16.8 million in Q1:2025.

South Africa's unemployment crisis deepened in the first quarter of 2025, with the official jobless rate climbing by one percentage point to reach a staggering 32.9%, according to the latest Quarterly Labour Force Survey (QLFS) released by Statistics South Africa (Stats SA) on Tuesday. This data paints a stark picture of continued job erosion, growing economic inactivity, and worsening prospects for young people across the country.

Employment Down by 291,000 as Labour Market Shrinks

Stats SA reported a sharp decline in employment figures, with the number of employed persons falling by 291,000, from 17.1 million in Q4:2024 to 16.8 million in Q1:2025. Concurrently, the number of unemployed individuals increased by 237,000, bringing the total number of unemployed persons to 8.2 million.

These shifts resulted in a net decrease in the overall labour force by 54,000 people, a 0.2% drop. The combined effect indicates a labour market under stress, with job losses outpacing new employment opportunities.

Not Economically Active Population Sees Significant Rise

The number of discouraged work-seekers — individuals who have given up on looking for employment due to a lack of hope — saw a modest increase of 7,000 (0.2%). However, a more worrying trend emerged in the form of a 177,000 (1.4%) increase in people who are not economically active for reasons other than discouragement.

This led to a total rise of 184,000 in the not economically active population, which now stands at 16.7 million. This demographic includes students, the elderly, homemakers, and others not actively seeking work but whose detachment from the labour market reduces the country's economic potential.

Expanded Unemployment Hits 43.1%

When accounting for discouraged job seekers and other marginally attached workers, the expanded unemployment rate surged by 1.2 percentage points, reaching 43.1% in Q1:2025. This broader measure reflects the full scope of labour market exclusion in South Africa and highlights the growing disillusionment among job seekers.

Sectoral Breakdown: Major Job Losses in Trade and Construction

The formal sector, often seen as the backbone of stable employment, took a major hit, shedding 245,000 jobs during the quarter. On the other hand, the informal sector added a marginal 17,000 jobs, indicating limited absorptive capacity.

Sector-specific employment trends were mixed:

• Increases were recorded in:

  • Transport: +67,000 jobs

  • Finance: +60,000 jobs

  • Utilities: +35,000 jobs

• Decreases were more widespread and included:

  • Trade: -194,000 jobs

  • Construction: -119,000 jobs

  • Private Households: -68,000 jobs

  • Community and Social Services: -45,000 jobs

  • Mining: -35,000 jobs

The declines in construction and trade — traditionally large employment sectors — are particularly troubling and point to shrinking demand and investment in these areas.

Provincial Disparities in Employment Trends

The geographical distribution of employment changes reveals pronounced regional disparities:

• Western Cape: +49,000 jobs

• Gauteng: +9,000 jobs

• Free State: +4,000 jobs

• Eastern Cape: -83,000 jobs

• KwaZulu-Natal: -104,000 jobs

• North West: -57,000 jobs

• Limpopo: -55,000 jobs

• Mpumalanga: -43,000 jobs

• Northern Cape: -12,000 jobs

Only three out of nine provinces saw employment growth, while others — especially KwaZulu-Natal and the Eastern Cape — experienced sharp declines, potentially exacerbating regional inequalities.

Youth Employment Crisis Deepens

South African youth remain disproportionately affected by the labour market turmoil. According to the report:

• The number of unemployed youth (aged 15–34) rose by 151,000, now totaling 4.8 million.

• The number of employed youth dropped by 153,000, to 5.7 million.

These changes pushed the youth unemployment rate up from 44.6% in Q4:2024 to 46.1% in Q1:2025. This entrenched youth joblessness highlights the urgency of interventions aimed at skills development, job creation, and entrepreneurship support tailored to the needs of young people.

Looking Ahead

South Africa’s rising unemployment is a symptom of broader structural economic challenges — including low growth, weak investment, and rigid labour policies. Without decisive action to stimulate demand, promote industrial growth, and enhance labour market flexibility, these figures may continue to deteriorate.

The persistence of high joblessness, especially among youth, underscores the need for coordinated responses across education, industry, and government. The data from Q1:2025 is a call to action — for policymakers, employers, and civil society alike — to reverse this dangerous trend and build a more inclusive, resilient economy.