South Africa’s job crisis deepens as youth unemployment nears 46%

South Africa’s official unemployment rate rose to 32.7% in the first quarter of 2026, up from 31.4% in the final quarter of 2025, according to the latest Quarterly Labour Force Survey released by Stats SA.

The economy lost 345,000 jobs during the three months, reducing the number of employed people to 16.8 million. At the same time, the number of unemployed South Africans increased by 301,000 to 8.1 million.

Youth unemployment continued to worsen, with the unemployment rate among people aged 15 to 34 rising to 45.8%. The number of unemployed youth increased by 181,000 to 4.7 million, while employment among young people declined by 258,000 to 5.6 million.

Stats SA Deputy Director for Labour Statistics Kwena Marevhula said the figures point to deteriorating labour market conditions.

“The results of the Quarterly Labour Force Survey for the first quarter of 2026 indicate that the working-age population in South Africa currently stands at 42.2 million and the labour force, which includes those who are employed and unemployed, is 24.9 million,” he said.

The survey also showed a rise in the number of people outside the labour force. This figure increased by 164,000 to 17.3 million and includes discouraged work-seekers as well as people available for work but not actively looking for employment.

New labour underutilisation measures introduced by Stats SA painted a broader picture of labour market strain. The combined unemployment and time-related underemployment rate increased to 35.9%, while the combined unemployment and potential labour force rate rose to 43.7%. The broad composite measure of labour underutilisation stood at 46.3%.

“These labour underutilisation measures highlight people in different situations with different degrees of attachment to the labour market,” Marevhula said.

Community and social services recorded the largest employment decline, shedding 206,000 jobs during the quarter. Construction lost 110,000 jobs, while transport employment fell by 30,000.

In contrast, manufacturing added 38,000 jobs, mining gained 32,000 and agriculture increased employment by 10,000 jobs.

Employment declined in all provinces except KwaZulu-Natal, which recorded a gain of 6,000 jobs. The largest employment losses were recorded in North West, Gauteng and Mpumalanga.

Marevhula said both formal and informal sector employment weakened during the quarter, highlighting the broad-based pressures facing South Africa’s labour market amid sluggish economic growth.

IOL