South Africa’s Unemployment Rate Climbs to 33.2% in Q2 2025 Amid Economic Pressures

South Africa — The country’s unemployment rate increased to 33.2% in the second quarter of 2025, up from 32.9% in Q1, according to Statistics South Africa (Stats SA). The rise underscores persistent challenges in the labor market as more South Africans struggle to find work.

Expanded Unemployment Rate Slightly Improves

While the narrow unemployment rate worsened, the expanded definition, which includes discouraged job seekers, decreased slightly by 0.2 percentage points to 42.9%. Despite this marginal improvement, the overall labor market remains under significant pressure.

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Sectoral Employment Trends

Stats SA reports mixed employment shifts across sectors:

• Job gains: Trade, private households, construction
• Job losses: Informal sector, government services, agriculture, finance, transport, utilities, manufacturing

These trends highlight structural challenges and uneven recovery across the economy.

Women and Youth Hit Hardest

Black African women remain disproportionately affected, with an unemployment rate of 51% under the expanded definition. Statistician General Risenga Maluleke explained:

"On the narrow formal definition, unemployment among Black African women sits at 40.2%, about seven percentage points higher than the overall rate of 33.2%."

Youth unemployment also remains critical, with 4.9 million young people aged 15–34 unemployed, pushing the youth unemployment rate to 46.1%, following an increase of 39,000 in Q2.

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Economic Outlook

Economists attribute high unemployment to structural economic challenges, though there are signs of cautious optimism. Johann Els, Chief Economist at Old Mutual, noted:

"Low inflation and lower interest rates are supporting consumer spending, particularly in trade, where retailers are hiring more people. These green shoots should foster better economic growth going forward."

However, Els cautioned that structural constraints must be addressed for sustained job creation.

Summary

South Africa faces a tough labor market with rising unemployment, particularly affecting women and youth. While some sectors show modest gains due to favorable economic conditions, structural challenges continue to impede overall employment growth. Targeted interventions will be critical to improving the country’s economic outlook and reducing unemployment in the long term.