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Frederick Mitchell, Chief Economist | Aluma Capital (Pty) Ltd
Frederick Mitchell
May 14, 2025

Employment Statistics in South Africa

Q1 2025

The employment statistics for the first quarter of 2025 present a mixed picture across different sectors, as detailed in the table above. Some sectors experienced increased employment compared to the fourth quarter of 2024, while others saw a decline in job opportunities during this period. Overall, the unemployment rate edged higher from 31.9% in the previous quarter to 32.9% in Q1 2025. Meanwhile, the expanded unemployment rate decreased slightly from 41.1% to 40.3% during the same timeframe.

In South Africa, formal non-agricultural employment declined by 291,000, dropping from 17.1 million in the fourth quarter to 16.8 million in Q1 2025. Conversely, the number of unemployed individuals increased by 237,000, stabilizing around 8.2 million. The working-age population grew by approximately 532,000 in the first quarter, representing an increase of about 1.3%.

Unemployment rates rose in six of the nine provinces, although Gauteng (+9,000), Western Cape (+49,000), and the Free State (+4,000) experienced employment increases. Decreases were observed in sectors such as Trade, Community and Social Services, Construction, Mining, and Manufacturing. Conversely, employment grew in the Transport, Finance, and Utility sectors. Notably, the informal sector added 17,000 jobs.

Overall, these employment figures are somewhat discouraging, with the unemployment rate surpassing the consensus forecast of 32.4% for Q1 2025. This slowdown can be attributed to ongoing international uncertainties, including the US tariff war against China and other nations, as well as concerns regarding the future of the AGOA agreement beyond September 2025. Diplomatic tensions between Washington and Pretoria related to various issues have also weighed on economic confidence. Consequently, many businesses appear to have adopted a cautious “wait-and-see” approach regarding expansion and hiring in the short term. However, the recent 90-day suspension of the US-China tariff war could positively influence both local and global markets, potentially boosting employment figures in the upcoming quarters.

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More Coverage

Manufacturing Production

August 2025
In August, South Africa’s manufacturing output further declined by 1.5%, following a 1.3% decrease in July. This downturn was significantly below market expectations, which had forecasted a 0.3% increase for August. The Purchasing Managers’ Index (PMI) also fell by 1.4 points, from 50.8 in July to 49.5 in August 2025, indicating a less favourable business climate anticipated by manufacturers for the month.

Reviving South Africa’s Economy

A Balanced Path to Growth, Jobs, and Prosperity
South Africa faces significant economic challenges that threaten the nation’s stability and future prosperity. Over the past decade, sluggish growth, high unemployment—particularly among the youth—and infrastructure decay have become critical issues. These problems are compounded by inconsistent policies, energy shortages, and a prevailing uncertainty in the investment climate. The African National Congress (ANC) has recognised this urgency, unveiling a ten-point plan aimed at revitalising the economy. While this approach shows a concerted effort to address systemic issues, a complementary set of reforms proposed in the Alternative Economic Blueprint offers a promising pathway toward sustainable growth, job creation, and economic freedom.

Gold and Foreign Exchange

September 2025
The South African International Liquidity Position, measured by Net Gold and Foreign Exchange Reserves, showed growth in both USD and Rand terms for September 2025.

Private Sector Credit Extension (PSCE)

August 2025
In August 2025, credit demand grew by 5.9%, slightly below the anticipated market prediction of 6.0% for the month. Since the initiation of interest rate cuts in September 2024, there has been a noticeable acceleration in overall credit growth, with most subcategories showing increases, particularly in July.

Internation Trade and Trade Balance

August 2025
International trade measures South Africa’s demand for foreign goods and services relative to its demand for domestically produced products in the global market.
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