The Department of Employment and Labour (DEL) acknowledges the release of the latest Quarterly Labour Force Survey (QLFS) for the second quarter of 2025, which reveals critical trends in South Africa's labour market. According to the QLFS, the official unemployment rate has once again increased, reaching 33.2%. Long-term unemployment (over one year) rose by 116,000, while short-term joblessness (less than one year) saw an increase of 23,000. Although the expanded unemployment rate declined slightly by 0.2 percentage points to 42.9%, these figures underscore persistent challenges.
DEL commends Statistics South Africa for its initiative to review and revise survey methodologies, particularly those aimed at better capturing data on the informal sector. This commitment is timely and necessary, enriching the national discourse and highlighting the urgent need for modernised tools and approaches that reflect the realities faced by South Africa and other emerging markets. Currently, only 16 out of every 100 members of the labour force are engaged in informal employment, far below the average of 45 out of 100 reported in comparable middle-income countries such as Mexico, Nigeria, and Uganda. This discrepancy raises important questions about whether the true extent of informality in South Africa is being suppressed and how it might be more accurately measured and supported.
The latest QLFS also points to widening inequalities: race, age, gender, location, and education remain decisive factors in employment prospects. Notably, the formal sector added 34,000 jobs in the second quarter, while the informal sector contracted by 19,000 jobs. The labour force expanded by 0.6%. Alarmingly, unemployment levels (140,000) outpaced employment growth (19,000), a sevenfold difference.
Employment gains were led by the trade sector (+88,000), private households (+28,000), and construction (+20,000), while significant losses were observed in community industries (-42,000), agriculture and finance (each -24,000), transport (-15,000), utilities (-6,000), and manufacturing (-5,000).
Provincial disparities remain: the Northern Cape, Western Cape, and KwaZulu-Natal provinces recorded job losses of 8.3%, 4.1%, and 3.1% respectively, whereas the Eastern Cape saw the highest job growth at 6.5%, with Mpumalanga trailing at 0.9%.
The youth (15-34 years) continue to face acute vulnerability, compounded by a projected GDP growth of just 0.9% for 2025 and the adverse effects of US tariffs on export-driven industries. DEL believes that the ongoing evaluation and revision of labour data collection tools are vital to developing effective, evidence-based policy responses. Such updates will enable interventions that are attuned to evolving labour market dynamics and the particular needs of vulnerable groups, especially women and young people, amid structural shifts in the economy and patterns of production.
Given these persistent and emerging challenges, the DEL asserts that a paradigm shift is required in how South Africa approaches unemployment, particularly youth unemployment. This requires expanding viable livelihood pathways within the informal economy, tackling structural constraints that limit its potential as a site of dignified work and entrepreneurship, and enhancing policy design through richer data on informal sector realities. We remain committed to fostering national dialogue, supporting skills development aligned with labour market demand, and championing the transformation of labour market systems for greater inclusion and resilience.
Statistics South Africa is set to publish the QLFS for the third quarter of 2025 in November, incorporating new standards in line with the International Conference of Labour Statisticians. We urge stakeholders to engage constructively with the revised data and join in shaping the policies that will drive South Africa's labour market forward.
Enquiries:
Teboho Thejane
Departmental Spokesperson
Cell: 082 697 0694
E-mail: teboho.thejane@labour.gov.za
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