SA’s unemployment rate dips in final quarter of 2025

Statistics SA this morning released the Quarterly Labour Force Survey for Q4 of 2025, which has revealed the official unemployment rate for South Africa has dropped marginally from the previous quarter to 31.4%.

Job seekers stand outside a construction site ahead of the release of the unemployement numbers by Statistics South Africa, in Eikenhof, south of Johannesburg, South Africa, 23 June 2020. Reuters/Siphiwe Sibeko

Job seekers stand outside a construction site ahead of the release of the unemployement numbers by Statistics South Africa, in Eikenhof, south of Johannesburg, South Africa, 23 June 2020. Reuters/Siphiwe Sibeko

According to the QLFS Q4: 2025 results, there was an increase of 44,000 in the number of employed persons to 17.1 million, while there was a decrease of 172,000 in the number of unemployed persons to 7.8 million compared with Q3: 2025 results. This resulted in a decrease of 128,000 (or 0.5%) in the labour force in the same period.

The above changes in employment and unemployment resulted in the official unemployment rate (LU1) decreasing by 0.5 of a percentage point from 31.9% in the third quarter of 2025 to 31.4% in the fourth quarter of 2025.

Job seeker stats

The survey showed that during the same period, discouraged job-seekers increased by 233,000 to 3.7 million, other available job-seekers decreased by 110,000 to 855,000, and unavailable job-seekers decreased by 41,000 to 42,000. This resulted in a total net increase of 82,000 to 4.6 million in the potential labour force population (ie. persons who were available but not seeking or unavailable but seeking).

Other outside the labour force increased by 165,000 to 12.5 million. Outside the labour force, which is the total of the potential labour force and other outside the labour force, increased by 248,000 to 17.1 million in Q4 of 2025.

Sector, industry and regional statistics

The number of persons employed in the formal sector increased by 320,000 in Q4: 2025, and informal sector employment decreased by 293,000 over the same period.

The largest increases in industry employment were recorded in community and social service (46,000), construction (35,000), and finance (32,000). Decreases in employment were recorded in trade (98,000), manufacturing (61,000), and mining (5,000).

The results also indicate that increases in employment were observed in Western Cape (93,000), Mpumalanga (37,000), North West (36,000) and Northern Cape (17,000). The largest employment decreases were recorded in Gauteng (54,000), KwaZulu-Natal (41,000), and Eastern Cape (32,000) during the same period.

Youth still at risk

The youth (15–34 years) remain vulnerable in the labour market. The results for the fourth quarter of 2025 show that the total number of unemployed youth decreased by 84,000 to 4.6 million compared with Q3: 2025, while employed youth recorded a decrease of 113,000 to 5.8 million.

As a result, the youth unemployment rate increased by 0.1 of a percentage point to 43.8% in the fourth quarter of 2025.

Labour underutilisation

Stats SA says that in addition to the unemployment rate (LU1), other measures of labour underutilisation (LU) were measured. The combined rate of unemployment and time-related underemployment (LU2) decreased by 0.6 of a percentage point to 34.3%; the combined rate of unemployment and potential labour force (LU3) decreased by 0.3 of a percentage point to 42.1% in the fourth quarter compared with the third quarter of 2025.

Lastly, the composite measure of labour underutilisation (LU4) (which combines time-related underemployment, unemployment and potential labour force as a proportion of extended labour force) was 44.5% in the fourth quarter of 2025. These labour underutilisation measures highlight people in different situations and with different degrees of attachment to the labour market.

Source: https://www.bizcommunity.com/article/sa-unemployment-rate-dips-in-final-quarter-of-2025-406589a

COSATU cautiously welcomes positive 1.3% drop in unemployment in Quarter 4 of 2025

The Congress of South African Trade Unions (COSATU) welcomes the positive drop in unemployment announced by Stats SA with the expanded definition of unemployment decreasing by 1.3% to 41.1% and the narrow definition falling by 0.5% to 31.4% for Quarter 4 of 2025.  The increase in employment by a net 44 000 jobs bringing the total number of working South Africans to over 17.1 million is hopeful news.

It is critical that this momentum is maintained and accelerated for Quarter 1 of the new year where there is normally a decrease in employment as the festive season jobs bump comes to an end.  South Africa is long overdue for some good news.

Whilst welcoming nearly a 1.3% decrease in unemployment over the past quarter, we dare not be complacent.  A 41.1% unemployment rate remains a dangerous ticking time bomb that cannot be sustained.  Much more needs to be done by the African National Congress led government, in particular to further capacitate the frontline public and municipal services that the working class and businesses depend upon, to inject additional stimulus needed to unlock economic growth including expediting the infrastructure investment programme, and to ramp up public employment programmes and relief for the poor and the unemployed.

Particular support must be provided by the state to struggling businesses and sectors due to the 30% tariff duty imposed on South African exports to the United States, increasingly unaffordable electricity and other economic challenges.  Such support must come in the form of tax relief, industrial subsidies and fixing the mind-numbing delays at the Unemployment Insurance Fund’s Temporary Employment Relief Scheme.

It is critical that the 2026/27 Budget and Medium-Term Expenditure Framework due to be tabled at Parliament on 25 February respond to these challenges and provides a bold stimulus package to take the economy to the 3% growth rate needed to slash unemployment.

The private sector must be compelled to end the investment strike and invest in government bonds, critical economic infrastructure and the industrial, manufacturing and agricultural jobs rich economic sectors.

Unemployment is the single greatest threat to the nation. Tackling it must be our collective focus, and every possible resource and intervention mobilised to defeat it.  South Africans do not expect overnight miracles, but we need to see consistent progress, in particular a 1% decrease in unemployment each quarter.  This will provide the momentum the economy needs and give hope to the working class and society.Issued by COSATU

Matthew Parks (COSATU Parliamentary Coordinator)

Mobile: 082 785 0687Email: matthew@cosatu.org.za

Source: https://mediadon.co.za/cosatu-cautiously-welcomes-positive-1-3-drop-in-unemployment-in-quarter-4-of-2025/

Ramaphosa’s Sona: A Nation’s Expectations Amidst Economic and Social Challenges

President Cyril Ramaphosa’s upcoming State of the Nation Address (Sona) is highly anticipated, with a focus on pressing socio-economic issues facing South Africa. The address comes after a year of the government of national unity and amid ongoing challenges such as high unemployment, infrastructure issues, and public service delivery concerns.

The upcoming State of the Nation Address ( Sona ) by President Cyril Ramaphosa on Thursday carries significant weight, with socio-economic themes taking center stage. The address, delivered in Cape Town, comes after a year of the government of national unity, a coalition involving ten political parties.

Anticipation is high as the city prepares for the event, with road closures already in effect since February 7 to accommodate parliamentary sittings and security measures, these closures will remain in place until February 28. The 2025 Sona outlined an ambitious reform agenda, including boosting growth above 3%, stabilizing the energy system, driving substantial infrastructure investment, accelerating logistics reform, rolling out digital identity systems, expanding employment programs, and stabilizing municipal utilities. While some progress has been made, such as improved energy reliability and exiting the FATF grey list, challenges persist. Growth remains between 1% and 1.4%, and unemployment hovers above 31%, highlighting the pressing need for effective strategies to address these critical issues. \President Ramaphosa’s address is expected to address key concerns, including the impact of electricity prices on miners and the need for solutions. Chabana, speaking in Cape Town, expressed hope that the President will acknowledge the difficulties faced by heavy energy users and commit to easing their financial burdens. A recent Sowetan poll indicated that unemployment, lack of water and electricity, and crime are among the top priorities residents want the President to address. The State of the Nation Address is estimated to cost taxpayers over R7 million, according to Parliament. This figure is lower than previous years, as stated by Secretary to Parliament Xolile George, speaking alongside National Assembly Speaker Thoko Didiza and National Council of Provinces Chair Refilwe Mtshweni-Tsipane. Security for the event will cost over R1.25 million, as confirmed by interim police minister Firoz Cachalia. The focus on economic challenges is further underscored by recent events, such as a protest in Parktown West where residents endured 20 days without water, spending significant amounts to secure alternative water sources, highlighting the widespread frustration over ongoing water supply disruptions in Johannesburg. \Beyond economic concerns, infrastructure and public services also draw attention. Parliament and the department of public works have had to invest approximately R25 million to revamp the Nieuwmeester Dome after it was damaged by Cape storms, on top of the R30 million spent to erect the dome in 2024 to house parliamentary sittings after the 2022 fire. Trade unions, such as Cosatu, are also eagerly anticipating the address, expressing high expectations and urging the government to act decisively on unemployment, economic growth, crime, and failing public services. Cosatu emphasizes that the Sona must respond to the needs and aspirations of the working class and society as a whole. With the Sona scheduled for February 12, the nation awaits President Ramaphosa’s vision for tackling these multifaceted challenges and charting a course towards sustainable and inclusive growth

Source: https://za.headtopics.com/news/ramaphosa-s-sona-a-nation-s-expectations-amidst-economic-79653192

Big retailers face parliamentary probe after Newcastle factory raid

Some of South Africa’s biggest retailers are set to appear before Parliament after MPs uncovered alleged labour and immigration violations at clothing factories in Newcastle.

The Employment and Labour Portfolio Committee (ELPC), following an oversight visit to the Newcastle Industrial Zone, said several factories were operating in breach of labour legislation, municipal bylaws and health and safety standards. The committee accused large retailers of supporting manufacturers that were breaking the law.

A joint inspection by the Department of Employment and Labour (DEL), the ELPC, Home Affairs and police on 5 and 6 February led to the arrest of employers accused of hiring 34 undocumented foreign nationals. Authorities said dozens of illegal workers were found living on factory premises.

Officials reported that goods destined for major retailers — including Pick n Pay, Mr Price, Ackermans and others — were being produced and packaged at the non-compliant facilities. ELPC chairperson Boyce Maneli said most factories inspected failed to meet Occupational Health and Safety Act requirements and did not comply with minimum wage laws. Non-compliant businesses were issued with contravention and prohibition notices.

Sources who joined the visit described hazardous conditions and alleged that workers were forced to work excessive hours without overtime pay. Cosatu’s provincial secretary Edwin Mkhize said some employees from Zimbabwe, Lesotho and Eswatini were paid between R350 and R750 per week in cash after complaints of non-payment.

Patriotic Alliance MP Juliet Basson shared video footage online showing clothing with price tags linked to major retailers, describing the treatment of workers as inhumane.

Retailers respond

Pick n Pay said the factory shown in circulating videos was not approved to manufacture its clothing and had been stopped immediately. The retailer said it outsources production but not responsibility, and is investigating the supplier.

Mr Price said it supports the parliamentary inspections and does not tolerate unsafe or unethical manufacturing practices. The group confirmed its labels appeared in the footage and said it would take action if its supplier code was breached.

Edgars, owned by Retailability, said it does not use sweatshops and requires suppliers to meet strict ethical and labour standards.

Pepkor said it had launched its own investigation, stressing that its supplier code of conduct prohibits unlawful or unethical practices and reaffirming its support for responsible local manufacturing.

The ELPC said it would work with other parliamentary committees to determine further steps to ensure accountability across the retail supply chain.

Source: https://supermarket.co.za/index.php/legislation/7719-big-retailers-face-parliamentary-probe-after-newcastle-factory-raid

Devastating blow to the SA Post Office

The Department of Finance has no legal obligation to give the Post Office R3.8 billion.

South Africa’s Department of Finance isn’t legally obligated to provide the R3.8-billion in funding to the South African Post Office that the state-owned entity says it was promised. This is the view of the Constitutional and Legal Services Office , which presented its legal opinion on the matter before Parliament on Friday, 6 February 2026.

“The R3.8 billion cannot, in accordance with our national budget process or PFMA, be regarded as a commitment by the department attaching a ‘legal liability’,” it said. “In our view, the facts present a scenario where the ‘commitment’ made by the department can be described as ‘tentative’, ‘provisional’, ‘conditional’, or as ‘noncommittal’.” According to the Post Office’s Business Rescue Plan, an initial tranche of R2.4 billion was approved by National Treasury in the 2023/24 financial year. The Business Rescue Practitioners , Anoosh Rooplal and Juanito Damons, anticipated that the approval process for the R3.8 billion in funding would be finalised in 2024. However, the Department of Finance rejected the entity’s request for the R3.8 billion in December 2024. Minister Enoch Godongwana attributed the decision to a “tough love” approach for state-owned entities. “There is an opportunity cost when you keep putting money into SOEs because you end up underfunding something else,” he said. The minister highlighted alternative options for the Post Office, including securing investment from private players. He said another option was for the Department of Communications and Digital Technologies to find savings to bridge funding gaps within the South African Post Office. The department was forced to do this in February 2025, when it provided a last-minute R150-million lifeline for the state mail carrier. However, this was only enough to pay the Post Office’s bills. The Post Office emphasised that it still required the R3.8 billion from the National Treasury for the BRP’s turnaround plan to be successful.According to the Post Office’s BRPs, two factors are critical to the success of their business rescue plan: maintaining the Post Office’s exclusivity over small parcel deliveries and receiving the R3.8 billion. It now appears highly unlikely that it will receive the funding, and communications minister Solly Malatsi recently issued a directive to terminate its exclusivity for small parcel deliveries. In mid-December 2025, Malatsi published a directive in the Government Gazette, amending Schedule 1 of the Postal Services Act, which concerns reserved postal services within SAPO’s mandate. The section originally included “all letters, postcards, printed matter, small parcels, and other postal articles subject to the mass or size limitations set”. Malatsi amended it to delete “small parcels”. Despite this, the Post Office’s BRPs emphasised that the entity’s exclusivity over small parcel deliveries under 1kg is still in place. “On 12 December 2025, Honourable Minister Solly Malatsi issued a directive, which was gazetted, amending the Postal Services Act to remove the reserved postal services category for parcels under 1kg,” they said. “This will effectively eliminate SAPO’s exclusivity on small parcels and is expected to negatively affect SAPO’s future postal and courier operations.” They added that they will engage with the Independent Communications Authority of South Africa regarding the minister’s directive. “The exclusivity is still currently in place, as Icasa must ratify directives via its regulatory approval processes. The determination of next steps rests with the regulator, not with SAPO,” the BRPs said. They argued that the Post Office legislated exclusivity aligns with the social mandate the entity should continue to have: providing key basic communication services to all households in South Africa. “The legislative exclusivity was modelled into the turnaround strategy document for SAPO. The loss of this exclusivity negatively impacts the projected revenues,” the BRPs said. “This effectively means the Post Office’s break-even profit/loss position will take much longer to achieve in future, and assuming that these revenue types can be replaced by other types of revenue.”

Source: https://za.headtopics.com/news/devastating-blow-to-the-sa-post-office-79654809