South Africa’s unemployment rate rose to 33.7 per cent in the third quarter of 2026, with the number of unemployed people increasing to 8.6 million.
The latest figures released by Statistics South Africa (Stats SA) showed that the official unemployment rate increased to 33.7% from 33.6 % recorded in the second quarter of 2026.
The increase highlights the persistent challenges facing South Africa’s labour market, where employment gains in some industries have been offset by job losses in others, particularly in the informal sector and private households.
According to Statistics SA’s Quarterly Labour Force Survey (QLFS), the country’s working-age population increased by 117,000 between the second and third quarters of 2026.
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The number of employed people rose to 16.8 million from 16.7 million recorded in Q2, 2026, while the unemployed population increased to 8.6 million from 8.5 million recorded in Q2, 2026.
Consequently, the labour force expanded by 198,000 (0.8%) between the second quarter of 2026 and the third quarter of 2026.
The labour force participation rate increased by 0.3 percentage point to 59.9 per cent, while the employment-to-population ratio, also known as the labour absorption rate, rose slightly by 0.1 percentage point to 39.7 per cent.
The number of people outside the labour force declined by 82,000 to 17 million.
However, the potential labour force increased by 69,000, largely due to a rise in discouraged work-seekers, indicating that more people who want employment are no longer actively searching for jobs.
The agency also reported that South Africa’s broader labour underutilisation rate remained at 46.3 per cent, unchanged from the previous quarter but 1.4 percentage points higher than in the third quarter of 2025.
The combined unemployment and time-related underemployment rate stood at 36.5 per cent, while the combined unemployment and potential labour force rate was 44 per cent.
Foreign-owned businesses face mounting pressure
The worsening employment situation comes amid sustained anti-foreigner sentiment and reported xenophobic attacks that have prompted several foreign nationals, including Nigerians, to leave South Africa.
Several Nigerian-owned businesses have reportedly closed or relocated following the tensions.
Some of the affected businesses employed South Africans, raising concerns about the potential consequences of hostility towards foreign entrepreneurs for small businesses, investment and employment.
Finance sector leads quarterly job gains
A breakdown of employment by industry showed that the Finance sector recorded the largest increase in jobs between the second and third quarters of 2026.
The sector added 111,000 jobs, followed by Manufacturing, which gained 33,000, Mining with 31,000 and Community and social services with 20,000.
However, employment declined in several other industries. For instance, the Private households recorded the largest quarterly job losses, shedding 68,000 positions. Agriculture followed with 34,000 losses, while Construction lost 8,000 jobs.
By employment category, formal employment increased by 268,000 during the quarter.
In contrast, informal employment declined by 98,000, while employment in private households fell by 68,000.
Annual employment figures show deeper challenges
Despite the quarterly increase in employment, the year-on-year figures present a weaker picture of South Africa’s labour market.
Total employment declined by 215,000, or 1.3 per cent, compared with the third quarter of 2025, while the number of unemployed people increased by 571,000, representing a 7.1 per cent rise.
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Community and social services recorded the largest annual employment decline, losing 197,000 jobs.
Private households followed with 87,000 job losses, while Construction and Trade shed 44,000 and 33,000 jobs, respectively.
Finance recorded the largest annual employment gain, adding 132,000 jobs. Mining followed with 32,000 additional positions, while Transport gained 11,000.
Mixed performance across occupations
Statistics SA also reported varying employment trends across occupational categories during the third quarter.
Sales and services occupations recorded the largest quarterly increase, adding 131,000 jobs; Managers gained 78,000 positions, while Professionals recorded an increase of 36,000.
However, Technician occupations experienced the largest decline, losing 92,000 jobs; Elementary occupations shed 32,000 positions, while domestic worker employment declined by 31,000.