South Africa’s unemployment rate rose to a four-year high, underscoring the economy’s persistent struggle to create enough jobs to absorb its growing labour force.
Data by Statistics South Africa, indicates that the rate rose to 33.6 percent in the second quarter of 2026, from 32.7 percent in the first quarter, reaching its highest level since the second quarter of 2022.
The number of unemployed people also rose by 4.2 percent, from 8.1 million in the first quarter to 8.5 million in the second quarter. This came even as the labour force expanded by 1.3 percent to 25.2 million.
However, the labour-force participation rate declined to 59.6 percent, indicating that the expansion in the potential workforce is not translating into stronger employment.
Reports also indicates that job losses were concentrated in the community and social services and mining sectors, while the trade and construction sectors recorded employment gains.
Broader labour-market weakness deepens
The headline unemployment rate also understates the extent of the country’s labour-market distress.
The combined unemployment and time-related underemployment rate rose to 36.6 percent in the second quarter, from 35.9 percent in the previous quarter. This measure includes people who are unemployed as well as those working fewer hours than they would like and available to work more.
The broader measure combining unemployment with the potential labour force also increased slightly to 43.8 percent from 43.7 percent.
Meanwhile, the overall measure of labour underutilisation remained elevated at 46.3 percent, indicating that a substantial share of the potential workforce is either unemployed, underemployed or insufficiently engaged in economic activity.
Job creation remains the central challenge
The latest figures reinforce the structural nature of South Africa’s unemployment crises. Although the labour force grew during the quarter, employment failed to keep pace.
The worsening labour market comes amid sustained anti-foreigner sentiment and xenophobic attacks in South Africa, which have prompted many foreign nationals, including Nigerians, to leave the country.
Several Nigerian-owned businesses have reportedly closed or relocated, with some employing South Africans. The development has raised concerns that a hostile environment for foreign-owned businesses could further weaken investment, small-business activity and employment, particularly in sectors that rely heavily on migrant entrepreneurs.