Jobless rate worsens to 33.6% with dire youth unemployment figures
The unemployment rate rose to 33.6% in the second quarter of 2026 from 32.7% in the first quarter, with the community and social service, mining, agriculture and manufacturing sectors shedding the most jobs, data showed on Tuesday.
During the quarter, the number of unemployed people increased by 345,000 to 8.5-million and there was a decrease of 16,000 in the number of those employed to 16.7-million compared with the first three months of the year, Stats SA said in its latest Quarterly Labour Force Survey.
The number of people employed in the formal and household sectors decreased by 41,000 and 9,000, respectively, in the second quarter, while those in the informal sector rose by 34,000.
The largest decreases in employment were recorded in community and social services (57,000) and mining (26,000), as well as agriculture and manufacturing at 15,000 each.
The total number of unemployed young people aged 15 to 34 increased by 264,000 to 5-million, while that of employed youth fell by 40,000 to 5.6-million. As a result, the youth unemployment rate increased by 1.5 percentage points to 47.4% in the second quarter.
Economists had predicted bleak jobs numbers for the second quarter, partly citing higher input costs for businesses due to the US-Iran war, which has sent oil prices spiralling.
The latest Rand Merchant Bank/Bureau for Economic Research confidence index shows local businesses came under significant pressure in the second quarter, with the operating environment deteriorating due to supply constraints linked to the Middle East conflict.
Unemployment, particularly among young people, was the focus of an annual public economics conference hosted by the Government Technical Advisory Centre last month. Treasury director-general Duncan Pieterse told delegates that as the dominant divisions in the manufacturing sector, which used to provide jobs, become increasingly less labour-intensive, the country must look to sectors such as tourism and construction to help reduce unemployment.
The government has long acknowledged that the economy, which only mustered growth of 1.1% last year, is not expanding anywhere near the levels needed to create jobs.
In an address to the same conference, finance minister Enoch Godongwana reiterated that “South Africa will not defeat youth unemployment at scale without faster, inclusive economic growth”.
He added: “But growth will not happen by itself. It requires reform. Reform requires implementation. Implementation requires capable institutions. And capable institutions require credible public finances, good data, accountability and discipline.”