{"id":8278,"date":"2026-09-21T10:30:00","date_gmt":"2026-09-21T09:30:00","guid":{"rendered":"https:\/\/openafricantribune.com\/?p=8278"},"modified":"2026-09-20T21:31:47","modified_gmt":"2026-09-20T20:31:47","slug":"south-africa-is-losing-jobs-while-more-people-look-for-work","status":"publish","type":"post","link":"https:\/\/openafricantribune.com\/fr\/2026\/09\/21\/south-africa-is-losing-jobs-while-more-people-look-for-work\/","title":{"rendered":"South Africa is Losing Jobs while More People Look for Work"},"content":{"rendered":"

South Africa\u2019s unemployment rate rose to 33.6% in the second quarter of 2026, up from 32.7% in the first three months of the year. But the headline figure does not fully capture what happened in the labour market between April and June.<\/p>\n\n\n\n

According to Statistics South Africa\u2019s Quarterly Labour Force Survey (QLFS), the number of unemployed people increased by 345,000 to about 8.5 million, while employment fell by 16,000 to 16.7 million. At the same time, the labour force expanded by 329,000. In other words, more people entered or remained in the labour force while the number of people in employment fell.<\/p>\n\n\n\n

Compared with the same period last year, employment has also edged down. South Africa had about 16.8 million employed people in the second quarter of 2025, compared with 16.7 million in Q2 2026, a decline of roughly 100,000 jobs over the year.<\/p>\n\n\n\n

This distinction is important because South Africa\u2019s jobs problem is no longer simply about people losing existing jobs. It has translated into an economy that has struggled to create enough new ones for people entering the labour market.<\/p>\n\n\n\n

According to the country\u2019s Department of Employment and Labour (DEL), the QLFS findings \u201cdeliver a sobering reality check: the data lay bare a labour market buckling under sustained and intensifying pressure.\u201d<\/p>\n\n\n\n

A labour market under pressure<\/h3>\n\n\n\n

The second-quarter figures present a mixed picture rather than a uniform collapse in employment.  Some parts of the economy created jobs. Trade added 70,000 positions during the quarter, construction added 39,000 and finance added 11,000. But those gains were outweighed by losses elsewhere. Community and social services shed 57,000 jobs, mining lost 26,000, while agriculture and manufacturing each lost 15,000.<\/p>\n\n\n\n

The movements reflect different conditions across the economy, although the QLFS does not provide a specific explanation for each sector\u2019s quarterly change. Harambee, which analyses labour-market trends in South Africa, described the increase in trade employment as a rebound in retail employment following the decline recorded in the first quarter.<\/p>\n\n\n\n

Construction also continued to show stronger employment over the longer term, with 94,000 more people employed in the sector than a year earlier. In mining, the 26,000-job decline came as production fell by 2.7% from the first quarter, with weaker output in platinum-group metals, coal and iron ore among the main contributors to the decline.<\/p>\n\n\n\n

The figures show that employment is responding differently across sectors. A decline in one industry can be partly offset by growth in another, but the scale of the gains has not been sufficient to absorb the growing number of people looking for work.<\/p>\n\n\n\n

DEL noted that \u201cKey indicators have registered further deterioration, reaffirming that South Africa\u2019s employment crisis is rooted in deep-seated structural rigidities, sluggish investment, persistently low labour absorption capacity and a troubling rise in labour market discouragement.\u201d<\/p>\n\n\n\n

The provincial picture is also uneven.<\/h3>\n\n\n\n

Mpumalanga recorded the largest quarterly increase in employment, adding 41,000 jobs, followed by Eastern Cape with 13,000 and Free State with 9,000. Western Cape, however, lost 48,000 jobs, while Gauteng lost 22,000 and North West lost 15,000.<\/p>\n\n\n\n

The figures show why the national unemployment rate can sometimes obscure what is happening on the ground. A worker in Mpumalanga is operating in a labour market that performed differently from one in Gauteng or Western Cape during the same three-month period.<\/p>\n\n\n\n

In Gauteng, employment fell by 22,000 between the first and second quarters and was down by 92,000 compared with the same period in 2025. The province\u2019s unemployment rate stood at 33.5%.<\/p>\n\n\n\n

KwaZulu-Natal offers a different picture. The province added 3,000 jobs during the quarter, while employment in eThekwini increased by about 30,000. Yet the provincial unemployment rate still rose to 32.5%, partly because the labour force expanded.<\/p>\n\n\n\n

One of the difficulties in interpreting South Africa\u2019s unemployment figures is that creating jobs is not enough if the number of people seeking employment is growing faster.<\/p>\n\n\n\n

Young people are carrying the heaviest burden.<\/h3>\n\n\n\n

The situation becomes more concerning when the figures are broken down by age. The number of unemployed South Africans aged 15 to 34 increased by 264,000 during the second quarter to five million. At the same time, youth employment fell by 40,000 to 5.6 million. The youth unemployment rate consequently increased by 1.5 percentage points to 47.4%.<\/p>\n\n\n\n

Nearly one in every two young people in the labour force was therefore unemployed during the period.<\/p>\n\n\n\n

EY South Africa, in an August 2026 analysis of the country\u2019s youth unemployment problem, noted that employment gains may increasingly favour workers with more experience, leaving first-time entrants behind. It argued that young people need opportunities to gain workplace experience and connect directly with employers, rather than relying on training alone.<\/p>\n\n\n\n

The result can be a cycle in which young people remain outside formal employment long enough to gain neither the experience nor the professional networks that employers often require.<\/p>\n\n\n\n

For many young South Africans, the cost of unemployment extends beyond the absence of a salary. A July 2026 report by IOL found that young job seekers were spending money on transport to interviews, mobile data and other costs associated with searching for work, even when those efforts did not result in employment. Youth Capital research cited in the report also found that many young people live far from economic hubs and face significant transport costs when looking for work.<\/p>\n\n\n\n

The National Youth Development Agency (NYDA) noted that the rise in the youth unemployment rate to 47.4% was concerning and showed that almost one in every two young people in the labour market was unable to find work. The agency said the figures highlighted the need for stronger interventions to connect young people to meaningful employment opportunities.<\/p>\n\n\n\n

The scale of the problem also means that youth unemployment cannot be solved through one programme or one sector. It requires an economy capable of producing large numbers of entry-level and skilled jobs while also improving the transition between education and employment.<\/p>\n\n\n\n

Statistics South Africa\u2019s figures from the first quarter already showed how severe the problem was. Among 15\u201324-year-olds, the unemployment rate was 60.9%, while it was 40.6% among those aged 25\u201334. The second-quarter increase suggests that the pressure has not eased.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

Why is the economy not creating enough jobs?<\/h3>\n\n\n\n

South Africa\u2019s weak employment performance has been tied to the broader problem of economic growth, which has remained too low for too long.<\/p>\n\n\n\n

An International Monetary Fund (IMF) analysis published in March 2026 found that real economic growth averaged below 1% between 2008 and 2024, compared with an average of 3.6% between 1994 and 2007. The IMF linked the weaker performance to structural rigidities, including inefficient state-owned enterprises, infrastructure problems, eroded state capacity and bureaucracy. It also identified weak business dynamism and subdued employment opportunities as related concerns.<\/p>\n\n\n\n

The organisation has separately pointed to problems affecting electricity, freight rail, ports and water infrastructure as constraints on South Africa\u2019s economic potential. These issues may appear distant from the unemployment rate, but they directly affect the ability of businesses to expand.<\/p>\n\n\n\n

A manufacturer that cannot reliably move goods to market faces higher costs, while a mining company dependent on an inefficient rail network may struggle to transport output. A small business facing unreliable electricity or cumbersome regulation may delay expansion or decide not to hire additional workers.<\/p>\n\n\n\n

This explains why substantial economic activity without a country can generate employment on the scale required.<\/p>\n\n\n\n

The IMF has argued that faster reforms in electricity and logistics are important for removing constraints on growth and reducing unemployment. It has also called for improvements to the business environment to encourage investment and job creation.<\/p>\n\n\n\n

South Africa\u2019s problem, then, is not simply a shortage of jobs in isolation. It is a combination of weak growth, infrastructure constraints, regulatory barriers and limited business expansion.<\/p>\n\n\n\n

Informal employment is also rising.<\/h3>\n\n\n\n

The latest figures also show the importance of informal employment. While formal-sector employment fell by 41,000 during the quarter, informal-sector employment increased by 34,000. Household employment also declined by 9,000. However, the data do not establish that people who lost formal jobs moved directly into informal employment.<\/p>\n\n\n\n

For many households, informal work provides an important source of income. But it can also be less predictable and may lack the protections and benefits associated with formal employment.<\/p>\n\n\n\n

A person may technically be employed while working irregular hours, earning an unstable income or operating a very small informal business. Others may be available to work but have stopped actively searching because they believe there are no opportunities.<\/p>\n\n\n\n

The broader measures of labour-market underutilisation therefore provide additional context. The official unemployment rate of 33.6% measures people who are unemployed but available for work and actively seeking employment. It does not capture everyone whose labour is being underused.<\/p>\n\n\n\n

Stats SA\u2019s broader composite measure, known as LU4, was 46.3% in the second quarter. It combines the unemployed with people who are employed but working fewer hours than they would like, as well as people in the potential labour force, including those who are available but not seeking work and those who are seeking work but are not currently available.<\/p>\n\n\n\n

The 12.7-percentage-point gap between the two measures is therefore significant. It shows that the pressure on South Africa\u2019s labour market extends beyond people officially classified as unemployed to others whose willingness or capacity to work is not being fully used.<\/p>\n\n\n\n

What is government doing about it?<\/h3>\n\n\n\n

South Africa has not been without employment interventions. The government has used public employment programmes, youth employment schemes and tax incentives to try to bring more people into work.<\/p>\n\n\n\n

The Presidential Employment Stimulus (PES), for example, created more than 2.5 million jobs and livelihood opportunities between October 2020 and December 2025, according to government figures. About 82% of beneficiaries were young people and 66% were women.<\/p>\n\n\n\n

\u201cThe stimulus also helps the economy grow inclusively from the ground up,\u201d President Cyril Ramaphosa noted, adding that \u201cWhen participants earn an income, that money flows into small businesses and stokvels, supporting township and rural economies.\u201d<\/p>\n\n\n\n

The Presidential Youth Employment Intervention (PYEI) has also expanded access to work opportunities and experience. By the third quarter of the 2025\/26 financial year, more than 5.77 million young people had registered on the SA Youth platform, while the programme had facilitated more than 2.36 million earning opportunities since its inception.<\/p>\n\n\n\n

The Youth Employment Service (YES), meanwhile, has placed more than 200,000 young people in year-long work-experience opportunities, according to President Cyril Ramaphosa\u2019s 2026 State of the Nation Address.<\/p>\n\n\n\n

There is also the Employment Tax Incentive (ETI), which reduces the cost to qualifying employers of hiring eligible young workers by allowing them to reduce their PAYE liability. The scheme is designed specifically to encourage businesses to hire young work seekers.<\/p>\n\n\n\n

These programmes matter, especially for young people who may otherwise have no route into the labour market. But there are concerns about whether employment programmes can compensate for an economy that is not creating enough permanent private-sector jobs.<\/p>\n\n\n\n

The government itself appears to recognise the distinction. In his June 2026 Youth Day address, Ramaphosa described public employment and youth programmes as giving young people \u201ca foothold in the world of work\u201d, while identifying sustainable job creation at scale as the broader priority.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

The business side of the problem<\/h3>\n\n\n\n

The IMF argued that South Africa needs stronger business dynamism and reforms that make it easier for firms to operate and invest, and identified product-market rigidities, infrastructure weaknesses and state capacity as part of the problem.<\/p>\n\n\n\n

South Africa\u2019s National Treasury has also recognised the need to support areas with greater potential for employment. Its 13th Jobs Fund funding round, launched in May 2026, focused on demand-led growth in the green and informal economies, with the aim of supporting scalable and sustainable employment.<\/p>\n\n\n\n

In an interview with OAT, Business empowerment and growth expert Samuel Akpan noted that \u201cWithout those conditions, government can continue funding employment programmes, but the private sector may remain too weak to absorb the millions of people looking for work.\u201d<\/p>\n\n\n\n

Is the latest increase temporary or structural?<\/h3>\n\n\n\n

It is too early to conclude from one quarter that South Africa\u2019s labour market is entering a period of sustained deterioration. But the broader pattern remains weak: employment fell nationally even as the labour force expanded by 329,000.<\/p>\n\n\n\n

\u201cA large population of people seeking work represents potential workers and consumers, but that potential cannot be fully used when businesses are not expanding fast enough,\u201d Akpan explained.<\/p>\n\n\n\n

The near-term outlook will depend largely on whether economic growth translates into sustained hiring. The IMF projects South Africa\u2019s economy to grow by about 1.4% in 2026, but says long-standing constraints in electricity, logistics, infrastructure and the business environment continue to limit the economy\u2019s ability to create jobs. Faster implementation of reforms could support investment and employment, while renewed disruptions to electricity, rail or ports could weaken growth and worsen labour-market conditions.<\/p>\n\n\n\n

That means the next few quarters should be judged not only by whether the unemployment rate rises or falls, but by what happens to employment and the size of the labour force. A sustained increase in employment, particularly in the private sector, alongside stronger investment and economic growth, would suggest that the economy is beginning to absorb new entrants. Continued employment losses alongside a growing labour force would point in the opposite direction.<\/p>\n\n\n\n

The composition of employment will also matter. If formal-sector jobs continue to decline while informal employment grows, the headline employment figure may conceal continued insecurity for workers. Similarly, if youth unemployment remains close to half of the youth labour force, improvements in the overall unemployment rate would not necessarily mean that the most difficult part of the jobs crisis is easing.<\/p>\n\n\n\n

South Africa\u2019s 33.6% unemployment rate therefore tells only part of the story. Behind it is a labour market struggling to absorb young people, a formal sector losing jobs even as informal employment grows, and businesses operating under constraints that limit their ability to expand. The next few quarters will show whether the country\u2019s reforms and economic recovery are beginning to change that pattern, or whether the structural barriers to job creation remain firmly in place.<\/p>","protected":false},"excerpt":{"rendered":"

South Africa\u2019s unemployment rate rose to 33.6% in the second quarter of 2026, up from 32.7% in the first three months of the year. But the headline figure does not fully capture what happened in the labour market between April and June. According to Statistics South Africa\u2019s Quarterly Labour Force Survey (QLFS), the number of […]<\/p>\n","protected":false},"author":117,"featured_media":8331,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"saved_in_kubio":false,"footnotes":""},"categories":[19,30,28],"tags":[],"class_list":["post-8278","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-economy","category-governance","category-society"],"_links":{"self":[{"href":"https:\/\/openafricantribune.com\/fr\/wp-json\/wp\/v2\/posts\/8278","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/openafricantribune.com\/fr\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/openafricantribune.com\/fr\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/openafricantribune.com\/fr\/wp-json\/wp\/v2\/users\/117"}],"replies":[{"embeddable":true,"href":"https:\/\/openafricantribune.com\/fr\/wp-json\/wp\/v2\/comments?post=8278"}],"version-history":[{"count":2,"href":"https:\/\/openafricantribune.com\/fr\/wp-json\/wp\/v2\/posts\/8278\/revisions"}],"predecessor-version":[{"id":8377,"href":"https:\/\/openafricantribune.com\/fr\/wp-json\/wp\/v2\/posts\/8278\/revisions\/8377"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/openafricantribune.com\/fr\/wp-json\/wp\/v2\/media\/8331"}],"wp:attachment":[{"href":"https:\/\/openafricantribune.com\/fr\/wp-json\/wp\/v2\/media?parent=8278"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/openafricantribune.com\/fr\/wp-json\/wp\/v2\/categories?post=8278"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/openafricantribune.com\/fr\/wp-json\/wp\/v2\/tags?post=8278"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}