SA Unemployment Falls to 31.9% as Government Ramps Up Youth Job Efforts

This progress has been welcomed by Employment and Labour Minister Nomakhosazana Meth, who praised the efforts underway to boost employment, especially among the youth.

South Africa’s labour market is showing signs of gradual recovery, with the country’s official unemployment rate declining to 31.9% in the third quarter of 2025, a 1.3 percentage point drop from the previous quarter. This progress has been welcomed by Employment and Labour Minister Nomakhosazana Meth, who praised the efforts underway to boost employment, especially among the youth.

The figures were released by Statistics South Africa (Stats SA) in its latest Quarterly Labour Force Survey (QLFS). According to Statistician-General Risenga Maluleke, approximately 248,000 more people were employed in Q3, following a modest increase of 19,000 in Q2, indicating positive momentum in the national labour market.

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Provinces Show Mixed Employment Outcomes

Encouragingly, seven provinces recorded a decline in their unemployment rates between the second and third quarters. Limpopo led the gains with the largest drop, reflecting successful provincial job creation initiatives.

However, Minister Meth expressed concern about the Eastern Cape, where unemployment increased by 1.7 percentage points, from 39.5% to 41.2%, highlighting the need for intensified regional interventions.

“We must continue to work harder in provinces that are falling behind, while building on the success stories to shape a national path toward inclusive economic growth,” the Minister said.

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Youth Unemployment Remains a Pressing Challenge

Despite the national improvement, youth unemployment remains critically high. Among those aged 15 to 24, the unemployment rate stands at 58.5%, while for those aged 25 to 34, it is 38.4%.

Minister Meth emphasized that the NEET (Neither in Employment, Education, or Training) rates for young people necessitate urgent and targeted interventions to close skills gaps and enhance employment readiness.

“The situation facing our young people is deeply concerning. We must do more to ensure they are not left behind in our economic recovery,” she added.

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Government Interventions Driving Labour Market Recovery

Minister Meth highlighted a range of interventions being implemented by the Department of Employment and Labour, in partnership with 17 other government departments in the Economic and Infrastructure Clusters. These include:

1. Presidential Youth Employment Initiative

• The department has allocated R4.013 billion to Phase V of the Basic Education Employment Initiative (BEEI).

• This programme targets over 158,000 Education Assistants and General Education Assistants, providing employment and critical school support services.

• Monthly stipends of R4,000 (gross) are paid to participants, all of whom are registered with the Unemployment Insurance Fund (UIF).

• To date, the UIF has disbursed R3.2 billion to beneficiaries.

2. Strengthening TVET and Critical Skills Training

• The Department is working closely with the Department of Higher Education and Training (DHET) and the private sector to bolster TVET colleges.

• The Compensation Fund has launched a targeted bursary programme to support students in scarce and critical skills, especially from the “missing middle” income group.

3. Project20000: Internships to Build State Capacity

• This initiative aims to recruit 20,000 interns to expand inspection and compliance capacity within the department.

• Already, 3,500 interns have been appointed, more than doubling the inspection workforce to enforce labour laws and standards.

4. Labour Activation and Job Preservation

• R10.9 billion has been allocated to job creation and retention schemes such as:

  • Temporary Employer/Employee Relief Scheme (TERS)

  • Business Turnaround and Recovery (BT&R) Programme

• 150 projects have been approved or are being contracted.

• The Labour Activation Programme (LAP) targeted 240,000 individuals in the last financial year, focusing on short-term training and placement.

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Labour Migration Policy and Legal Reform

In a bid to ensure fairness in employment and reduce illegal labour practices, the Cabinet has approved:

• National Labour Migration Policy (NLMP)

• Employment Services Amendment Bill

These frameworks aim to regulate the recruitment of foreign nationals, ensuring all visa categories comply with labour legislation and reduce conflicts between the Department of Home Affairs and Department of Employment and Labour.

“We need to strike a balance that respects our international obligations while protecting job opportunities for South African workers,” Meth said.

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The Call for Cross-Sector Collaboration

Minister Meth reiterated the government’s dedication to working with businesses, educational institutions, and civil society to ensure sustainable employment opportunities for all, especially for young people.

“Our mission is to transform the labour market by investing in skills development, promoting entrepreneurship, and focusing on high-growth sectors such as green energy, ICT, and manufacturing.”

The department pledged to continue monitoring labour market trends and implement evidence-based policies that support inclusive economic growth and job creation across South Africa.

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Hope Amid Structural Challenges

While the reduction in unemployment to 31.9% is a promising development, the Minister acknowledged that more needs to be done to bring relief to millions still without work. Structural barriers such as skills mismatches, geographic disparities, and limited access to work opportunities for youth must be tackled head-on.

With multi-sectoral collaboration, robust funding commitments, and targeted programmes now underway, the groundwork is being laid to build a more resilient, inclusive, and future-ready labour market for South Africa.