The Department of Employment and Labour has acknowledged the release of the latest Quarterly Labour Force Survey (QLFS) for the second quarter of 2025, which reveals critical trends in South Africa's labour market.
According to the QLFS, the official
Although the expanded unemployment rate declined slightly by 0.2 percentage points to 42.9%, overall trends remain concerning.
In a statement on Sunday, the department commended Statistics South Africa (Stats SA) for its initiative to review and revise survey methodologies, particularly those targeting the informal sector.
“This commitment is timely and necessary, enriching the national discourse and highlighting the urgent need for modernised tools and approaches that reflect the realities faced by South Africa and other emerging markets,” the department said.
According to the department, only 16 in every 100 workers in South Africa are engaged in informal employment, compared to around 45 in comparable middle-income countries such as Mexico, Nigeria and Uganda.
The department said this raises critical questions about whether the extent of informality is being underreported and how it could be better measured and supported.
The survey results also reveal widening inequalities in employment opportunities, with race, age, gender, location and education remaining decisive factors. The formal sector added 34,000 jobs in the second quarter, while the informal sector contracted by 19,000. The labour force expanded by 0.6%, yet unemployment growth (+140,000) far outpaced job creation (+19,000).
Job gains were mainly in the trade sector (+88,000), private households (+28,000) and construction (+20,000). However, losses were recorded in community services (-42,000), agriculture and finance (-24,000 each), transport (-15,000), utilities (-6,000) and manufacturing (-5,000).
Provincial data showed the Eastern Cape recording the highest employment growth at 6.5%, followed by Mpumalanga at 0.9%. By contrast, the Northern Cape (-8.3%), Western Cape (-4.1%) and KwaZulu-Natal (-3.1%) recorded significant job losses.
The department expressed concern over the persistent vulnerability of young people (15–34 years), warning that the situation could be worsened by the projected gross domestic product (GDP) growth of only 0.9% for 2025 and the impact of US tariffs on export-driven industries.
The department said the revision of labour data collection tools was critical to shaping evidence-based policies, particularly for vulnerable groups such as women and youth.
“Such updates will enable interventions that are attuned to evolving labour market dynamics and the particular needs of vulnerable groups, especially women and young people, amid structural shifts in the economy and patterns of production.”
Paradigm shift
Given these persistent and emerging challenges, the department asserts that a paradigm shift is required in how South Africa approaches unemployment, particularly youth unemployment.
“This requires expanding viable livelihood pathways within the informal economy, tackling structural constraints that limit its potential as a site of dignified work and entrepreneurship, and enhancing policy design through richer data on informal sector realities.
“We remain committed to fostering national dialogue, supporting skills development aligned with labour market demand, and championing the transformation of labour market systems for greater inclusion and resilience,” the department said.
Stats SA is set to publish the QLFS for the third quarter of 2025 in November, incorporating new standards in line with the International Conference of Labour Statisticians.
The department urged stakeholders to engage constructively with the revised data and join in shaping the policies that will drive South Africa's labour market forward. – SAnews.gov.za
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