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Unemployment Rate South Africa and Employment Sector Shifts

Unemployment Rate South Africa Shows Slight Rise Amid Employment Sector Shifts

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Unemployment Rate South Africa Shows Slight Rise Amid Employment Sector Shifts

5 months ago
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South Africa’s latest Quarterly Employment Statistics (QES) for September 2025 revealed a modest rise in total employment, with 29,000 new jobs (0.3%) added since June 2025. This brings the total number of employed South Africans to 10,549,000, offering a cautious optimism in a challenging labour market.

Employment Sector Shifts Highlight Growth Areas

The increase was primarily driven by community services, which added 39,000 jobs (1.4% growth), followed by trade with 6,000 new positions (0.3%) and mining contributing 5,000 jobs (1.1%).

Conversely, sectors like business services (-12,000 jobs, -0.5%), manufacturing (-5,000, -0.4%), and construction (-4,000, -0.7%) recorded declines. Electricity and transport sectors remained stable, indicating a low but steady level of employment.

Full-time employment also saw a slight dip, falling by 21,000 jobs (-0.2%), with business services again showing the most significant losses (18,000 positions). Meanwhile, part-time employment rose by 50,000 jobs (4.6%), reflecting a clear shift in the employment sector toward more flexible work arrangements. Community services accounted for 42,000 of these new part-time roles (9.5%), with trade showing consistent resilience.

Job Vacancies South Africa and Compensation Trends

In terms of financial compensation, gross earnings across all industries increased by R10.7 billion (1.1%), surpassing the R1 trillion mark. Gains were particularly notable in business and community services sectors. Year-on-year, gross earnings rose by R31.2 billion (3.2%), with average monthly earnings increasing 0.3% from R29,402 in May to R29,490 in August 2025, a 4.3% rise compared to August 2024.

Bonuses surged by R6.2 billion (10.9%) during the quarter, suggesting improved employee morale. However, overtime payments fell sharply by R3.3 billion (-11.1%) quarter-on-quarter and R1.9 billion (-6.9%) year-on-year, reflecting efforts by industries to manage labour costs amid uncertain business conditions.

Challenges in Sustaining Employment Growth

Despite the slight quarterly gains, year-on-year figures reveal ongoing challenges, with a net loss of 79,000 jobs (-0.7%) since September 2024. The data highlights the importance of employment sector shifts and the need for sustainable job creation to counter persistent unemployment and poverty levels.

Frank Blackmore, Lead Economist at KPMG South Africa, emphasized the broader context:

“Statistics South Africa shows that although poverty has declined across age groups since 2006, significant levels persist. The younger population faces higher vulnerability due to slow economic growth. Prioritising economic growth and job opportunities is critical to long-term recovery.”

As South Africa navigates these mixed employment statistics, the balance between optimism from short-term gains and the realities of long-term challenges remains key for policymakers and businesses alike.

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This story was first reported by African News Agency. Read the full article here.

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