The Department of Employment and Labour has acknowledged the release of the latest Quarterly Labour Force Survey (QLFS) for the second quarter of 2025, which highlights critical shifts in South Africa’s labour market.

According to the QLFS, the official unemployment rate climbed to 33.2%, with long-term unemployment rising by 116,000 and short-term joblessness increasing by 23,000. Although the expanded unemployment rate declined marginally by 0.2 percentage points to 42.9%, the overall picture remains concerning.

In a statement issued on 17 August, the department commended Statistics South Africa (Stats SA) for revising its methodologies, particularly in the informal sector.

“This commitment is timely and necessary, enriching the national discourse and highlighting the urgent need for modernised tools and approaches that reflect the realities faced by South Africa and other emerging markets,” the department said.

South Africa’s informal employment accounts for just 16% of workers, compared to about 45% in countries such as Mexico, Nigeria and Uganda. The department suggested this may indicate underreporting of informal sector activity and emphasised the need for improved measurement.

Job Gains and Losses

The QLFS shows widening inequalities in employment opportunities, with race, gender, age, location and education continuing to influence outcomes. While the formal sector added 34,000 jobs, the informal sector lost 19,000. The labour force grew by 0.6%, yet unemployment expanded by 140,000, far outpacing the net job creation of 19,000.

Job gains were recorded in trade (+88,000), private households (+28,000) and construction (+20,000). However, declines occurred in community services (-42,000), agriculture and finance (-24,000 each), transport (-15,000), utilities (-6,000) and manufacturing (-5,000).

Provincially, the Eastern Cape achieved the highest employment growth at 6.5%, followed by Mpumalanga at 0.9%. By contrast, significant losses were noted in the Northern Cape (-8.3%), Western Cape (-4.1%) and KwaZulu-Natal (-3.1%).

Youth and Structural Challenges

The department expressed particular concern about youth unemployment, warning that it could worsen with the projected GDP growth of just 0.9% for 2025, alongside the negative impact of US tariffs on export industries.

A revision of labour data collection tools was described as critical for shaping evidence-based policy, particularly to address the needs of women and young people.

Call for Paradigm Shift

The department argued for a paradigm shift in tackling unemployment.

“This requires expanding viable livelihood pathways within the informal economy, tackling structural constraints, and designing policies informed by richer data on informal sector realities,” it said.

The department reaffirmed its commitment to skills development, inclusive labour market reforms, and partnerships for greater resilience. Stats SA will publish the third-quarter QLFS in November 2025, incorporating new international standards.