Unemployment in South Africa falls to lowest level since 2020

South Africa’s long battle with joblessness showed a modest improvement at the end of 2025, offering cautious relief for households under pressure. The unemployment rate fell to 31.4 percent in the fourth quarter, down from 31.9 percent in the prior three months. It was the second straight quarterly decline and the lowest reading since the third quarter of 2020.

South Africa jobless rate eases to 31.6 percent

The figures, released Tuesday by Statistics South Africa in Pretoria, were slightly better than the 31.7 percent median estimate in a Bloomberg survey of three economists. For an economy that has struggled to gain speed in recent years, even a narrow improvement carries weight. It signals that some parts of the private and public sectors are still hiring, despite weak growth and recurring power and logistics constraints.

A closer look at the data shows how fragile the gains remain. The number of unemployed South Africans declined by 172,000 to 7.8 million in the three months through December. Employment rose by 44,000 to 17.1 million. At the same time, the labor force shrank by 128,000 to 24.9 million, reflecting how some job seekers stepped back from actively looking for work.

Jobless rate above 30 percent since 2020

Even with the recent easing, the jobless rate has held above 30 percent since 2020, underlining the scale of the challenge facing policymakers. Hiring remains uneven. Seven of the 10 sectors tracked recorded job gains. Community and social services led, adding 46,000 positions.

Construction followed with 35,000 new jobs, while finance added 32,000. Those gains were partly offset by losses in trade, which shed 98,000 jobs. Manufacturing cut 61,000 positions, and mining employment fell by 5,000. The mixed picture reflects an economy where pockets of resilience coexist with ongoing strain.

The formal sector showed relative strength, with employment rising by 320,000 in the fourth quarter. By contrast, the informal sector, a vital source of income for many families, saw employment decline by 293,000. The divergence highlights structural weaknesses and the need for steady policy support to protect vulnerable workers.

Ramaphosa pushes reforms amid unemployment drop

The data come as President Cyril Ramaphosa renews calls for faster reforms to lift growth, attract investment and improve state efficiency. Finance Minister Enoch Godongwana is set to present the annual budget on Feb. 25, with investors and business leaders watching for measures that could support job creation.

Youth unemployment remains one of the country’s most pressing concerns. The rate for people aged 15 to 24 eased to 57 percent from 58.5 percent in the third quarter. While the decline is welcome, more than half of young South Africans seeking work are still without jobs, a reality that shapes household finances and long-term growth prospects.

For now, the drop to 31.4 percent stands as a rare bright spot. It does not solve the deep-rooted issues in the labor market. But for millions of South Africans, even incremental progress can make a tangible difference.