BREAKING NEWS: South Africa’s Official Unemployment Rate Rises to 32.7% in Q1 2026 as 345,000 Jobs Lost

Pretoria – South Africa’s official unemployment rate climbed to 32.7% in the first quarter of 2026, with 345,000 jobs lost in the first three months of the year, according to the latest Quarterly Labour Force Survey.

The increase reverses the decline seen in Q4 2025, when the rate fell to 31.4% - the lowest level since late 2020. Economists had expected a modest rise, citing weak economic growth, subdued business confidence, and the impact of global uncertainty on hiring decisions. 

The job losses were concentrated in trade, construction, and private households, sectors that have repeatedly recorded declines in recent quarters. Formal sector employment fell sharply, while informal sector jobs saw a smaller gain.

Analysts say the rise reflects structural constraints, skills mismatches, and sluggish GDP growth, which is forecast at around 1.5% for 2026. Youth unemployment remains a particular concern, with more than a third of people aged 15-24 not in employment, education or training.

Statistics South Africa is expected to release the full QLFS report this week. The expanded unemployment rate, which includes discouraged job seekers, remains above 40%.

The Presidency and National Treasury have said job creation remains a priority, with a focus on infrastructure projects and private sector investment to stimulate hiring.