By Thanda Sithole
The Quarterly Labour Force Survey (QLFS), a household-based employment survey (not seasonally adjusted), recorded a robust quarter-on-quarter (q/q) increase of 248 000 in total employment in 3Q25, following an increase of 19 236 in the previous quarter. At 17 055 000, total employment was 109 000 higher than in the corresponding quarter last year, reflecting a resilient labour market even in a low-growth environment.
People outside the labour force amounted to 16 886 000 in 3Q25, representing a quarterly increase of 293 000. This includes the potential labour force (about 4 500 000), those available but not seeking employment, and those not available but seeking employment, as well as "other" persons outside the labour force, which totalled 12 400 000.
Stats SA indicated that the definitions of formal and informal employment have undergone significant revisions based on resolutions of the latest International Conference of Labour Statisticians (ICLS). As a result, the 3Q25 estimates on informality are not comparable with previous estimates. In the reference quarter, formal sector (including formal agriculture) employment amounted to 11 983 000, informal sector (including informal agriculture) employment to 3 961 000, and household sector employment to 1 111 000.
The level of unemployment declined by 360 000 q/q and by about 3 000 y/y to 8 007 000. Combined with labour force gains, this resulted in the official unemployment rate falling to 31.9% from 33.2%. The combined1 rate of unemployment and the potential labour force was 42.4% in 2Q25, down from 43.0% in the previous quarter. Compared with the 31.9% official unemployment rate, this suggests that the degree of unmet need for employment among the working-age population remains considerable.
Industry employment insights:
Outlook
The improvement in employment in 3Q25 aligns with expectations of modest GDP growth. However, the persistently high unemployment rate underscores the continued vulnerability and weakness of the labour market. This is further compounded by heightened uncertainty regarding the potential employment impact of US tariffs on sectors such as agriculture, automotive, machinery and equipment manufacturing, and mining (excluding critical mineral producers). Over the medium term, sustained structural reforms and accelerated efforts to diversify export markets will be essential to support job creation.
