SA's unemployment rate increased to 32.9% in first quarter of 2025

The official unemployment rate in South Africa has increased by a percent in the first quarter of 2025, to reach 32.9%

This is according to Statistics South Africa’s Quarterly Labour Force Survey released on Tuesday.

 ‘’According to the QLFS Q1: 2025 results, there was a decrease of 291 000 in the number of employed persons to 16,8 million from 17,1 million in Q4: 2024, while there was an increase of 237 000 in the number of unemployed persons to 8,2 million. This resulted in a decrease of 54 000 (down by 0,2%) in the labour force during the same period,’’ said Dihlolelo Phoshoko, StatsSA Director for Quarterly Labour Force Survey

‘’The above changes in employment and unemployment resulted in the official unemployment rate increasing by 1,0 percentage point from 31,9% in the fourth quarter of 2024 to 32,9% in the first quarter of 2025. The expanded unemployment rate in the first quarter of 2025 increased by 1,2 percentage points to 43,1% when compared with the fourth quarter of 2024, which was 41,9%,’’ she added.

Discouraged work-seekers increased by 7 000 (up by 0,2%), and the number of persons who were not economically active for reasons other than discouragement increased by 177 000 (up by 1,4%) between the fourth quarter of 2024 and the first quarter of 2025.

‘’This led to an increase of 184 000 in the number of the not economically active population, to 16,7 million,’’ she said.

 The number of persons employed in the formal sector decreased by 245 000 in Q1: 2025, and the informal sector employment increased by 17 000 over the same period.

‘’The largest industry increases in employment were recorded in Transport (67 000) Finance (60 000) and Utilities (35 000). Decreases in employment were recorded in Trade (194 000), Construction (119 000), Private households (68 000), Community and Social services (45 000), and Mining (35 000),’’ revealed StatsSA.

Provinically, the North West has overtaken the Eastern Cape in recording the highest unemployment figures in the country. The results also indicate that increases in employment were observed in Western Cape (49 000), Gauteng (9 000) and Free State (4 000), while decreases were observed in KwaZulu-Natal (104 000), Eastern Cape (83 000), North West (57 000), Limpopo (55 000), Mpumalanga (43 000) and Northern Cape (12 000).

The Western Cape has the lowest unemployment rate in South Africa at 19.6%. For the third consecutive quarter, the Western Cape’s official unemployment rate is below 20%. The Western Cape has also seen improvements to the Expanded Unemployment Rate (24.7%), Absorption Rate (56.0%) and its Labour Force Participation Rate (69.6%).

In Quarter 1 of 2025, the Western Cape also recorded the largest increase in employment. The Western Cape created 121 000 jobs year-on-year.

Done By: Mitchum George