South Africa’s unemployment rate has risen to its highest level in four years, with the number of unemployed people reaching 8.5 million as worsening labour market conditions add to pressure on the country’s fragile economic recovery.
Statistics South Africa (Stats SA) reported on Tuesday that the official unemployment rate increased to 33.6% in the second quarter of 2026, up from 32.7% in the first quarter.
The latest figures from the Quarterly Labour Force Survey (QLFS) cover labour market conditions between April and June 2026. The household-based survey measures labour market activity among people aged 15 and older, with the report focusing primarily on those aged 15 to 64.
Stats SA said the working-age population increased by 121,000, or 0.3%, during the quarter. However, employment weakened as the number of employed people fell by 16,000 to 16.7 million.
At the same time, the number of unemployed people increased by 345,000 to 8.5 million, pushing the total labour force higher by 329,000, or 1.3%.
“During the same period, the number of employed individuals decreased by 16,000 to 16.7 million, while the number of unemployed persons grew by 345,000 to reach 8.5 million,” Stats SA said.
The increase in unemployment pushed the official rate 0.9 percentage points higher, while the labour absorption rate declined slightly to 39.6%.
The latest figures mark a further deterioration from the first quarter, when unemployment had already increased from 31.4% in the fourth quarter of 2025 to 32.7%.
The second-quarter unemployment rate is the highest recorded since 2022, while the number of unemployed people rose from 8.1 million in the previous quarter to 8.5 million.
Employment declined in the formal and household sectors, although the informal sector recorded modest growth. Job losses were concentrated in the community and social services and mining sectors, while the trade and construction industries recorded employment gains.
The deterioration comes amid wider economic pressures. The second quarter followed the outbreak of the Middle East conflict on February 28, which contributed to higher global energy prices and increased pressure on household budgets.
The South African Reserve Bank also raised interest rates in May as it sought to contain inflation, adding to pressure on investment and consumer spending.
The weak employment figures are also likely to intensify debate over South Africa’s treatment of foreign investors and entrepreneurs. The country has experienced sustained anti-foreigner sentiment and xenophobic attacks, prompting some foreign nationals, including Nigerians, to leave the country.
Several Nigerian-owned businesses have reportedly closed or relocated, with some of the affected entrepreneurs employing South African workers. The developments have raised concerns that an increasingly hostile business environment could undermine investment and employment opportunities.
The latest figures could therefore add to calls for a reassessment of policies and attitudes toward foreign-owned businesses at a time when South Africa is struggling to create enough jobs for its growing working-age population.
Air Peace Chairman Allen Onyema has previously urged Nigerians to withdraw investments from South Africa and reduce their economic support for the country, arguing that economic pressure would be a more peaceful response to repeated xenophobic attacks.
Nigeria’s unemployment rate, meanwhile, has not been officially released since November 2024, although it is estimated at 4.9% following the rebasing of the country’s labour market metrics.
For South Africa, the latest labour market figures present another challenge for policymakers. With 8.5 million people unemployed and employment weakening, authorities face increasing pressure to stimulate investment and job creation while managing inflation and interest-rate risks.
The South African Reserve Bank kept its benchmark interest rate at 7% in July but indicated that further tightening could become necessary if inflationary pressures intensify, potentially adding another constraint to economic activity and employment growth.
