South Africa’s unemployment rate fell to its lowest level in over five years in the final quarter of 2025, driven by job gains in the community and social services and construction sectors.

South Africa’s unemployment rate fell to its lowest level in over five years in the final quarter of 2025, driven by job gains in the community and social services and construction sectors.

Statistics South Africa reported that the jobless rate dropped to 31.4% for the three months ending in December, down from 31.9% in the previous quarter. Economists surveyed by Bloomberg had expected a slightly higher rate of 31.7%.

Despite the recent decline, unemployment remains exceptionally high, with South Africa consistently posting rates above 30% since the pandemic’s peak in 2020. The latest figures offer a modest boost to an economy that has long struggled with sluggish growth and persistent labour market challenges.

According to Statista’s 2025 GDP comparison, South Africa’s economy is estimated at $410 billion, making it the largest on the continent, a scale that shows both its economic potential and the pressure to create jobs for millions of job seekers.

Youth fund & migration

As Africa’s most industrialised economy, South Africa has long grappled with high unemployment. In October, the government announced plans to deploy a 2.5 billion rand ($135 million) Youth Fund to provide loans and support small businesses.

At the same time, the country has intensified deportations of undocumented migrants, as economic pressures mount and public frustration over joblessness grows.

South Africa continues to draw job seekers from across the region, particularly from Zimbabwe and Mozambique, stressing its role as a regional economic hub. Yet unemployment remains among the highest in the world, with about 8.4 million people actively seeking work.

Last week, President Cyril Ramaphosa reiterated his commitment to accelerate reforms aimed at spurring economic growth, attracting investment, and enhancing efficiency in the public sector. These measures, if fully implemented, could support job creation.

Finance Minister Enoch Godongwana is expected to outline additional details when presenting the annual budget on February 25, offering further insight into the government’s strategy for tackling unemployment. (Business Insider Africa)