Western Cape sees significant job growth as unemployment dips to 18.1%

The Western Cape recorded the lowest unemployment rate in the country in the fourth quarter of 2025, with the province’s official rate declining to 18.1%, according to the latest Quarterly Labour Force Survey (QLFS) released by Statistics South Africa (Stats SA).

Nationally, the official unemployment rate decreased by 0.5 of a percentage point to 31.4% in the October to December period.

Employment in the Western Cape increased by 93,000 quarter-on-quarter, rising from 2.814 million in the third quarter to 2.907 million in the fourth quarter of 2025. Compared with the same quarter a year earlier, employment in the province increased by 95,000.

The province also recorded the highest employment-to-population ratio (absorption rate) in the country at 56.3%.

By comparison, Gauteng’s unemployment rate stood at 33.0%, KwaZulu-Natal at 32.3%, and the Eastern Cape recorded the highest rate at 42.5%.

National employment increased by 44,000 quarter-on-quarter to 17.1 million, while the number of unemployed persons declined by 172,000 to 7.836 million. The working-age population grew to 42.068 million during the same period.

In the report, Statistician-General Risenga Maluleke said: “An increase in employment and a decrease in unemployment resulted in a decrease of 0,5 of a percentage point in the unemployment rate to 31,4% in the fourth quarter of 2025.”

Industry data shows that between the third and fourth quarters of 2025, employment gains nationally were recorded in seven of the ten industries. The largest increases were in community and social services (+46,000), construction (+35,000), finance (+32,000) and agriculture (+30,000).

Over the same period, employment declined in trade (-98,000), manufacturing (-61,000) and mining (-5,000). Year-on-year, manufacturing recorded a decrease of 127,000 jobs.

The survey further shows that informal sector employment declined by 293 000 quarter-on-quarter, while formal sector employment increased by 320 000.

Stats SA noted that from the third quarter of 2025, sector definitions were revised in line with updated international standards, meaning estimates are not directly comparable with earlier quarters produced under previous definitions.

Despite the decline in the official unemployment rate, the number of discouraged work-seekers increased by 233 000 to 3.714 million. The potential labour force rose by 82 000 to 4.611 million.

Among young people aged 15 to 24 years, 34.0% were not in employment, education or training (NEET) in the fourth quarter of 2025, 0.5 of a percentage point higher than a year earlier.

The next set of labour market results, covering the first quarter of 2026, is expected in May, according to Stats SA.

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