The Business Weekly

South Africa’s Unemployment Rate Ticks Up to 33.7% in Q3 2026 Despite Job Gains

South Africa’s Unemployment Rate Ticks Up to 33.7% in Q3 2026 Despite Job Gains

South Africa’s official unemployment rate inched upward to 33.7% in the third quarter of 2026, shifting up by 0.1 of a percentage point from 33.6% in the second quarter. According to the latest Quarterly Labour Force Survey (QLFS) released by Stats SA, the domestic labour market experienced concurrent expansions in both employment and job-seeking numbers.

During the quarter, the number of employed persons grew by 101,000, bringing total employment to 16.8 million. Concurrently, the number of unemployed individuals rose by 97,000 to reach 8.6 million. This dual growth drove a net expansion of 198,000, or 0.8%, in the total labour force compared to the preceding quarter.

The broader environment of labour underutilisation presented mixed signals. Discouraged job-seekers climbed by 70,000 to total 3.7 million, while other available job-seekers edged down by 1,000 to 860,000.

Combined with unchanged unavailable job-seekers at 44,000, the potential labour force grew by 69,000 to reach 4.6 million. Meanwhile, persons outside the labour force for reasons other than discouragement decreased by 150,000 to 12.4 million, lowering the overall non-active population by 82,000 to 17.0 million.

Alternative measures of labour underutilisation highlighted shifting dynamics across different degrees of labour market attachment. The combined rate of unemployment and time-related underemployment (LU2) dropped slightly by 0.1 of a percentage point to 36.5%.

Conversely, the combined rate of unemployment and the potential labour force (LU3) increased by 0.2 of a percentage point to 44.0%. The comprehensive composite measure of labour underutilisation (LU4)—which aggregates time-related underemployment, unemployment, and the potential labour force as a proportion of the extended labour force—held steady at 46.3%.

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