Unemployment Rate in South Africa Improves Slightly in Q4 2025
Date: 17 February 2026
Key Highlights:
Statistics South Africa (Stats SA) has released the Quarterly Labour Force Survey (QLFS) for the fourth quarter of 2025, showing a modest decrease in the official national unemployment rate. According to the latest data:
- The official unemployment rate declined to 31.4% in Q4 2025, down from 31.9% in Q3 2025, marking the lowest quarterly rate in over five years.
- Employment increased by 44 000 people, bringing total employment to approximately 17.1 million. At the same time, the number of unemployed individuals decreased by 172 000 to roughly 7.8 million.
- This translated into a 0.5 percentage point decline in the unemployment rate compared with the previous quarter.
Broader Labour Market Trends
While the headline unemployment figure shows improvement, other indicators highlight continued labour market challenges:
- The number of discouraged job-seekers rose by 233 000 to 3.7 million, suggesting that many individuals are no longer actively seeking work.
- Combined measures of labour underutilisation, which capture unemployment and time-related underemployment, remained elevated, although showing marginal improvements.
- Youth unemployment (ages 15–34) remains particularly high, with the rate increasing slightly compared with the previous quarter, emphasising persistent structural challenges for young workers.
What This Means for Employers & HR Strategy
- The slight drop in unemployment indicates modest recovery efforts in parts of the economy, but the labour market remains strained.
- Employers should continue to invest in skills development, talent retention strategies and inclusive hiring practices, particularly for youth and discouraged workers.
- HR planning should also consider broader labour utilisation measures—not just the headline unemployment rate—when forecasting workforce needs and formulating employment equity and training strategies.
👉 At HRC, we continue to support businesses in translating labour market insights into practical HR and compliance strategies that drive sustainable growth.
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E-mail: info@hrconsultsa.co.za
Adapted by HR Consult, specialists in South African labour and employment law compliance.
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