South Africa’s official unemployment rate rose sharply to 32.7% in the first quarter of 2026, increasing by 1.3 percentage points from 31.4% in the final quarter of 2025, according to the latest Quarterly Labour Force Survey (QLFS) released by Statistics South Africa (Stats SA).
The increase reflects a significant reversal in labour market conditions, following modest gains in late 2025, and highlights ongoing structural weaknesses in the economy. Employment fell by 345,000 to 16.8 million, while the number of unemployed people rose by 301,000 to 8.137 million, underscoring continued pressure on job creation.
The labour force contracted by 44,000 in the first quarter, with job losses recorded across seven of the ten major industries. The steepest declines were seen in community and social services, construction, and transport, while manufacturing, mining, and agriculture recorded limited gains.
Broader measures of labour underutilisation also worsened, with the expanded unemployment rate rising to 43.7% and overall labour underutilisation reaching 46.3%. The number of discouraged job seekers increased notably, signalling growing long-term detachment from the labour market.
Economists warn that persistent skills mismatches, weak investment, infrastructure bottlenecks, and energy constraints continue to limit job creation. Without accelerated structural reforms, South Africa is expected to struggle to reduce unemployment meaningfully in the medium term.