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South Africa’s Unemployment Rate Rises to 33.6% in Second Quarter

South Africa’s official unemployment rate rose to 33.6 per cent in the second quarter of 2026, up from 32.7 per cent in the previous quarter, highlighting continued weakness in the country’s labour market.

According to Statistics South Africa, the number of unemployed people increased to 8.481 million between April and June, compared with 8.137 million recorded from January to March.

The official unemployment rate has remained above 30 per cent for more than five years, leaving South Africa with one of the highest jobless rates globally.

Employment fell across most sectors during the quarter, with seven of the 10 industries tracked by Statistics South Africa recording job losses.

The community and social services sector recorded the largest decline, followed by mining, agriculture and manufacturing.

The losses offset employment gains recorded in trade, construction and financial services.

The broader unemployment measure also deteriorated during the period. The expanded unemployment rate, which includes people who have stopped actively searching for jobs, increased slightly to 43.8 per cent from 43.7 per cent in the first quarter.

The latest figures underline the difficult economic challenge facing South Africa’s coalition government, formed in 2024, as it seeks to address persistent unemployment.

The country has struggled to generate sufficient jobs for its growing working-age population despite economic reforms and periods of modest economic growth.

Young people remain particularly vulnerable, with limited opportunities to enter the formal labour market.

Black women are also among the groups most affected by unemployment, reflecting longstanding disparities in access to jobs and economic opportunities.

The deterioration in employment comes despite government efforts to improve the business environment, attract investment and support sectors capable of generating jobs.

South Africa’s economy continues to face challenges linked to weak infrastructure, electricity supply problems, high logistics costs and slow investment.

Although reforms have been introduced to address some of these constraints, the latest labour market figures suggest that significant challenges remain.

The decline in mining employment is particularly significant because the sector remains an important source of exports, investment and foreign exchange for South Africa.

Job losses in agriculture and manufacturing have also raised concerns about the ability of labour-intensive sectors to absorb workers on a sustainable basis.

While increased employment in trade, construction and financial services provided some support, the gains were insufficient to compensate for losses recorded in other industries.

The latest figures leave job creation as one of the most pressing challenges facing South African policymakers as the country seeks to accelerate economic growth and reduce inequality.

With more than eight million people officially unemployed and the expanded unemployment rate approaching half of the labour force, sustained investment and stronger economic growth will be required to significantly reduce joblessness.

The latest data indicate that despite policy reforms and improvements in some areas of the economy, South Africa’s labour market remains under severe strain.

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