South Africa's unemployment crisis: A deepening challenge
The labour force survey also revealed worsening conditions for young people, with youth unemployment climbing to over 40%.
Image: Ron Lach/Pexels
South Africa’s worsening unemployment crisis is showing little sign of meaningful improvement in the near future, with economists and youth advocacy groups warning that global instability, weak economic growth and domestic structural failures continue to threaten jobs and investment.
According to the latest Quarterly Labour Force Survey released by Statistics South Africa, the country’s official unemployment rate climbed to 32.7% during the first quarter of 2026, up from 31.4% in the previous quarter.
The figures revealed that South Africa lost hundreds of thousands of jobs during the quarter, with employment declining to 16.8 million people, while the number of unemployed South Africans rose to 8.1 million. The expanded unemployment rate, which includes discouraged work seekers, increased to 43.7%.
The data also showed a sharp rise in discouraged work seekers, which climbed to 3.9 million people, while both the formal and informal sectors recorded significant job losses.
Economist Ulrich Joubert said the country’s unemployment rate was unlikely to decline this year, warning that economic growth is expected to remain too weak to absorb the growing labour force.
Joubert said South Africa’s anticipated economic growth rate of around 1% would not be enough to create substantial employment opportunities, particularly amid rising inflationary pressures, high oil prices and ongoing economic uncertainty.
“The unemployment rates are just unacceptable,” Joubert said, warning that persistently high unemployment continues to fuel crime and social unrest.
Adding to the concerns, Raymond Parsons from the North-West University Business School described the latest unemployment figures as an “early warning signal” of the impact the growing global energy crisis is beginning to have on South Africa’s economy and labour market.
Parsons warned that while the economy still has some resilience, the country’s economic buffers are “limited and partial”, with recent signs of recovery now under threat due to worsening global developments.
He said the ongoing conflict in the Middle East and tensions linked to the US-Iran war were increasing downside risks to economic growth and employment prospects for the remainder of 2026.
“The longer the Middle East conflict persists, the greater the downside risks to growth and employment,” Parsons said.
Economist Dawie Roodt said while the rise in unemployment was expected, the increase was sharper than anticipated.
He said the current unemployment levels remained “horrendous”, regardless of whether there were marginal increases or decreases in the figures.
Roodt also defended South Africa’s official unemployment calculations, saying the country uses internationally accepted definitions and methodologies.
He noted, however, that some economically active people operating informally may still consider themselves unemployed despite earning an income.
Despite this, Roodt warned that unemployment is likely to worsen further in the coming months as economic growth weakens even more.
He said global instability, particularly conflict in the Middle East and rising oil prices, would continue to place pressure on South Africa’s already fragile economy.
“I can’t see economic growth of 1% this year,” Roodt said, stressing that economic growth remains the single biggest driver in reducing unemployment.
He argued that South Africa needs significantly faster economic growth to create jobs, but said excessive bureaucracy, regulations and policy uncertainty were standing in the way of investment and business expansion.
Roodt also raised concerns about the country’s skills deficit, saying South Africa is struggling to compete globally against highly skilled economies such as China.
He stressed that South Africa should focus more on skills development rather than education alone, saying practical workplace skills are increasingly critical in a changing economy.
According to Roodt, the rise of artificial intelligence and technological advancement could further reduce employment opportunities for low-skilled workers, while benefiting highly skilled employees and widening inequality.
Meanwhile, youth advocacy organisation Youth Capital said the latest labour force survey should end any belief that South Africa’s labour market is recovering, arguing instead that it is being “hollowed out” with young people carrying the heaviest burden.
The organisation pointed out that while the official unemployment rate stood at 32.7%, broader issues paint a far bleaker picture.
According to Youth Capital, when discouraged work seekers and under-employment are included, South Africa’s labour under-utilisation rate climbs to 46.3%, meaning nearly one in every two working-age South Africans is unemployed, under-employed or has stopped searching for work entirely.
The situation is even more severe among young people aged 15 to 34, where the broader labour underutilisation rate now sits at 58.9%.
Youth Capital said nearly 9.6 million young South Africans between the ages of 15 and 34 are currently not in education, employment or training (NEET), describing the figure as a national crisis.
Buhlebethu Magwaza, project lead at Youth Capital, warned that government cuts to public employment initiatives risk shutting young people out of economic participation altogether.
“The latest QLFS data does not paint a picture of a country slowly recovering. It shows a country slowly closing the door on young people,” Magwaza said.
Joubert stressed that stronger economic growth, improved investment levels and a more business-friendly environment were essential to reducing unemployment. He argued that government needed to reduce regulatory burdens and improve conditions for businesses to operate profitably and employ more people.
He also highlighted the importance of functioning municipalities, saying failing infrastructure and rising tariffs were placing additional strain on businesses.
According to Joubert, local authorities need to prioritise reliable electricity, water, sewerage systems and road infrastructure to support economic activity and encourage job creation.