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Unemployment rate not yet a sign of structural improvement – ActionSA


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Unemployment rate not yet a sign of structural improvement – ActionSA

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Unemployment rate not yet a sign of structural improvement – ActionSA

Unemployment rate not yet a sign of structural improvement – ActionSA
Photo by Reuters

11th November 2025

By: Thabi Shomolekae
Creamer Media Senior Writer

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ActionSA said on Tuesday the rebound in quarter three of South Africa’s unemployment rate is a recovery after earlier losses, not yet a sign of structural improvement.

South Africa's official unemployment rate fell slightly in the third quarter of this year, to 31.9% from 33.2% in the second quarter, Statistics South Africa’s (Stats SA's) data showed.

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Stats SA said the number of unemployed people decreased to 8.007-million in July to September from 8.367-million in April to June.

ActionSA MP Alan Beesley said his party welcomed the 248 000 jobs created in the third quarter of this year, adding that while it was a positive development the country still battled a joblessness crisis, with 12-million South Africans without work.

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Beesley pointed to a holistic view of the year, noting that the country still experienced a net decrease in employment of 24 000, following a 291 000 job loss in the first quarter, a marginal increase of 19 000 in the second quarter, and the gain of 248 000 in the third.

Data showed that jobs were added in construction, with over 130 000; trade with over 108 000, and community and social services with more than 116 000. Losses occurred in manufacturing (-62 000); finance (-54 000); and utilities (-30 000).

“These shifts underline the fragility of the recovery. Although the official unemployment rate declined from 33.2% to 31.9%, and the combined labour underutilisation rate (now reported as the LU3 rate) declined slightly to 42.4%, these figures still reflect an economy unable to absorb its workforce and a government without a credible plan,” Beesley said.

South Africa could not afford to accept a 31.9% unemployment rate as normal, he stated.

“Every South African deserves the dignity of work, and ActionSA will continue to advance policies that place job creation and economic inclusion at the heart of government priorities, a commitment the Government of National Unity has clearly not demonstrated,” he said.

Meanwhile, the Democratic Alliance (DA) in the Western Cape celebrated the province’s lowest unemployment of 19.7%.

DA Western Cape spokesperson on Agriculture, Economic Development and Tourism Noko Masipa said the province also created 70 000 new jobs in this quarter, the highest increase in employment of any province.

“This is a clear indication that the Western Cape’s Growth for Jobs strategy is gaining traction, driving confidence among businesses and investors across key industries. This demonstrates that the Western Cape’s economy continues to expand and absorb workers even under challenging global and domestic conditions,” Masipa stated.

The party pointed out that the expanded unemployment rate sat at 25.8%, lower than any other province’s narrow unemployment rate.

“The province further achieved the highest labour absorption rate at 54.7%, meaning more than half of all working-age residents are employed. In addition, the labour force participation rate stands at 68.1%, tied with Gauteng as the most economically active population in South Africa,” he highlighted.

The statistics also showed encouraging sectoral growth, with construction, trade, and finance all recording significant employment gains in the province. Masipa said this reflected continued investor confidence, strong infrastructure development, and “a thriving private sector supported by targeted provincial initiatives”.

Masipa stated that nationally, South Africa saw the unemployment rate fall by 1.3 percentage points to 31.9%, showing that economic recovery efforts were gaining momentum across the country.

“Within this context, the Western Cape’s sustained performance illustrates the effectiveness of a stable, well-managed economy that enables business to grow and employ.

"These results come amid a period of global uncertainty, with ongoing geopolitical instability and rising input costs affecting markets worldwide. The province’s consistent results once again highlight that where the DA governs, jobs grow and economies remain resilient — even in the face of global and domestic headwinds,” he said.

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