South Africa’s unemployment rate has surged to 33.6%, marking another grim milestone in the nation’s ongoing economic struggles. According to Statistics South Africa’s latest Quarterly Labour Force Survey (QLFS), released on Tuesday, the number of unemployed individuals rose to 8.5 million between April and June 2026. This represents an increase of 345,000 compared to the previous quarter, as employment numbers dropped by 16,000 to 16.7 million. The rise in unemployment underscores the deepening challenges facing the country’s labor market. The unemployment rate climbed by 0.9 percentage points, moving from 32.7% in the first quarter of 2026 to 33.6% in the second. This marks the highest level since the fourth quarter of 2021, when the official rate hit 35.3%. Under a broader definition that includes people who have stopped searching for work, the unemployment rate exceeded 46% during that period, reflecting the severe impact of the pandemic on the economy. The labor force grew by 329,000 over the quarter, driven by more people entering or returning to the job market. However, this growth did not translate into widespread employment opportunities. The number of people outside the labor force decreased by 208,000 to 17.1 million, primarily due to fewer individuals being classified as discouraged workers or part of the potential labor force. Employment losses were observed in both the formal and household sectors, while the informal sector saw modest gains. The formal sector lost 41,000 jobs, and the household sector shed 9,000 positions. In contrast, the informal sector added 34,000 jobs during the quarter. By industry, trade emerged as a key area of growth, with 70,000 new jobs created, followed by construction (39,000) and finance (11,000). Conversely, community and social services suffered the largest job losses, shedding 57,000 positions, while mining, agriculture, and manufacturing each lost 15,000 jobs. Regionally, employment trends varied significantly. Mpumalanga recorded the most substantial gain, adding 41,000 jobs, followed by the Eastern Cape (13,000) and the Free State (9,000). Meanwhile, the Western Cape saw a decline of 48,000 jobs, Gauteng lost 22,000, and the North West experienced a drop of 15,000. These regional disparities highlight the uneven nature of economic recovery across the country. Youth unemployment remains particularly acute. The number of unemployed individuals aged 15 to 34 increased by 264,000 to 5 million, while the number of employed youth fell by 40,000 to 5.6 million. As a result, the youth unemployment rate rose by 1.5 percentage points to 47.4% in the second quarter. This figure reflects the disproportionate burden placed on young people in the current labor market. The broader labor market continues to face significant pressures. The combined unemployment and time-related underemployment rate climbed to 36.6%, while the combined unemployment and potential labor force rate rose to 43.8%. The broadest measure of labor underutilization remained unchanged at 46.3%, indicating that nearly half of the population is either unemployed or not fully utilizing their skills in the workforce. These figures paint a bleak picture of South Africa’s economic landscape, highlighting the urgent need for targeted interventions to address structural weaknesses and support sustainable employment creation.
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