South Africa’s unemployment hits five-year low in Q4 2025, boosted by construction and social services jobs.
South Africa saw its unemployment rate drop to the lowest level in over five years during the final quarter of 2025, driven by job growth in the construction and community and social services sectors.
According to Statistics South Africa, the jobless rate fell to 31.4% for the three months ending in December, down from 31.9% in the previous quarter. This was slightly better than the 31.7% rate economists had predicted in a Bloomberg survey.
Despite the improvement, unemployment remains extremely high, with South Africa consistently recording rates above 30% since the pandemic peak in 2020. The latest figures provide a small boost to an economy that continues to struggle with slow growth and persistent labor market challenges.
The government has announced plans to launch a 2.5 billion rand ($135 million) Youth Fund to provide loans and support for small businesses. At the same time, authorities have intensified deportations of undocumented migrants amid mounting economic pressures and public frustration over joblessness.
South Africa remains a regional economic hub, attracting job seekers from neighboring countries such as Zimbabwe and Mozambique, but unemployment continues to be among the highest globally, with roughly 8.4 million people actively seeking work.
Last week, President Cyril Ramaphosa reaffirmed his commitment to accelerating reforms aimed at boosting economic growth, attracting investment, and improving public sector efficiency measures that could help create jobs.
Finance Minister Enoch Godongwana is expected to provide more details on the government’s unemployment strategy when presenting the annual budget on February 25.