Unemployment rate falls, helped by construction

Workers are seen at a construction site at Protea Glen, a township of Johannesburg, South Africa, 19 March 2021. Reuters/Siphiwe Sibeko

The official jobless rate stood at 31.9% in July-September, down from 33.2% in April-June.

Unemployment rose above 30% five years ago during the Covid-19 pandemic and has been stuck there since, despite repeated government initiatives to try to boost job creation.

Six of the 10 industries tracked by Statistics South Africa recorded employment gains in the third quarter, while four saw decreases.

The most jobs were added in construction (130,000 jobs), community and social services (116,000) and trade (108,000).

Stats SA said it had updated its methodology in line with International Labour Organization guidelines.

Unemployment rate increases to 33.2%

14 Aug 2025

Statistics official Solly Molayi said the new methodology had contributed to the job gains in construction, as it meant more informal jobs had been captured.

Another official noted unemployment had tended to fall in the third quarter in recent years.

Africa's biggest economy picked up pace in the second quarter, though growth remains sluggish.

Electricity supply has improved and logistics bottlenecks eased, but weak domestic demand means firms have held back on investing.

Gina Schoeman, Citi's South Africa economist, said investment as a share of gross domestic product would need to rise from 14% to around 16% to achieve a meaningful dent in unemployment.

"To get to job numbers doing better, you first need to invest in actual capital expenditure and expand your business," she said.