South Africa’s unemployment crisis continues to place pressure on the economy, with the official unemployment rate increasing to 33.7% in the third quarter of 2026, according to the latest figures released by Statistics South Africa (Stats SA).
The Quarterly Labour Force Survey, covering July to September 2026, shows that the unemployment rate increased from 33.6% recorded in the previous quarter, leaving approximately 8.6 million people without jobs.
Although the country added 101,000 jobs during the quarter, the number of unemployed people also increased by 97,000. The labour force expanded by 198,000 people, meaning employment growth was insufficient to prevent the unemployment rate from rising.
Millions Still Struggling To Find Work
The latest figures also highlight the growing number of discouraged job-seekers in the country.
Stats SA reported that approximately 3.7 million people had stopped actively looking for employment, following an increase of 70,000 during the quarter.
When unemployment, underemployment and the potential labour force are considered together, the broader labour underutilisation rate remained at 46.3%. This highlights the wider challenges facing people who are struggling to secure sufficient work.
Some Industries Create Jobs While Others Lose Them
Employment growth was mainly recorded in the formal sector, which added 268,000 jobs, bringing total formal employment to approximately 12.3 million.
The finance industry recorded the largest employment increase, adding 111,000 jobs. Manufacturing added 33,000, while mining contributed another 31,000.
However, the informal sector lost 98,000 jobs, while private households recorded a decline of 68,000. Agriculture also shed 34,000 jobs, with construction losing a further 8,000.
Youth Unemployment Remains A Major Concern
Young South Africans continue to face significant difficulties entering the labour market. The unemployment rate among people aged 15 to 34 declined slightly to 47.3%.
However, approximately five million young people in this age group remained unemployed. The number of employed young people also decreased by 5,000 during the quarter, showing that the slight improvement in the unemployment rate does not necessarily mean more young people found work.
South Africa’s latest unemployment figures underline the continuing challenge of creating enough sustainable employment opportunities for a growing labour force.
While certain industries recorded job gains, millions of people remain without work, highlighting the need for stronger job creation and opportunities for young people entering the economy.
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