• Jobless rate drops 0.5 points to 31.4%, lowest since Q3 2020

• Gains in services, construction, finance, agriculture offset losses

• Broader rate including discouraged workers stands at 42.1%

South Africa’s unemployment rate declined to 31.4% of the labor force in the fourth quarter of 2025, its lowest level since the third quarter of 2020, according to data released on February 17 by Statistics South Africa (Stats SA).

The figure marks a 0.5 percentage point decrease from 31.9% in the third quarter of 2025. The improvement was mainly driven by job gains in community and social services (46,000), construction (35,000), finance (32,000), and agriculture (30,000).

However, significant job losses were recorded in trade (98,000), manufacturing (61,000), and mining (5,000). Overall, seven of the ten sectors tracked by Stats SA posted employment gains between October 1 and December 31, 2025, while three reported declines.

Unemployment in Africa’s most industrialized economy climbed above 30% during the Covid-19 pandemic and has remained at that level despite several government initiatives aimed at supporting job creation. The fourth-quarter decline comes as economic conditions improve, supported in part by easing energy shortages and a gradual reduction in logistics bottlenecks.

Under Stats SA’s definition, only individuals actively seeking work are classified as unemployed. Discouraged work-seekers—those who have stopped looking for jobs—are excluded. When these individuals are included, the expanded unemployment rate rises to 42.1% in the fourth quarter of 2025, compared with 42.4% in the previous quarter.

Walid Kéfi