South Africa’s unemployment rate edged lower at the end of 2025, but the picture is still messy when you zoom in. Statistics South Africa’s latest Quarterly Labour Force Survey (QLFS) shows the official unemployment rate fell to 31.4% in Q4 2025, down from 31.9% in Q3 2025.

Unemployment Drops but the Labour Force Shrinks

Stats SA reports that 44,000 people found work between October and December 2025, pushing total employment to 17.1 million. At the same time, the number of unemployed people fell by 172,000 to 7.8 million.

The overall labour force declined by 128,000 (0.5%) over the quarter. That means some people didn’t just move into jobs, they also moved out of active job searching.

Discouraged Job-Seekers Increase

The survey shows discouraged work-seekers rose by 233,000 to 3.7 million in Q4 2025. The “potential labour force” climbed to 4.6 million, while the total number of people outside the labour force increased to 17.1 million.

Stats SA also tracked broader pressure in the job market, including underemployment. The combined rate of unemployment and time-related underemployment dropped to 34.3%, while the composite labour underutilisation measure was 44.5% in Q4 2025.

Western Cape Surges While Gauteng Takes a Knock

Provincial numbers tell a sharp story. The Western Cape added 93,000 jobs, the biggest gain in the country. Gauteng lost 54,000 jobs, the largest decline, followed by KwaZulu-Natal (down 41,000) and the Eastern Cape (down 32,000).

Youth Unemployment Remains the Real Crisis

Young people are still getting hit hardest. Stats SA says unemployed youth fell by 84,000 to 4.6 million, but employed youth also dropped by 113,000 to 5.8 million. The youth unemployment rate ticked up to 43.8% in Q4 2025.