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South Africa is grappling with a significant rise in its official unemployment rate, which reached 33.7% in the third quarter of 2026, Cape {town} Etc reports.

Despite the gain of 101 000 new jobs pushing employment up to 16.8 million, the nation is facing the reality of an increase in joblessness, with 8.6 million South Africans now classified as unemployed, marking an uptick of 97 000 from the previous quarter.

The latest results from the Quarterly Labour Force Survey (QLFS) reveal crucial changes in the labour market dynamics. While the overall number of people in the labour force increased by 198 000 (or 0.8%), the number of discouraged job-seekers surged by 70 000, bringing the total to a staggering 3.7 million.

The overall unemployment landscape also reveals that those categorised as ‘other available job-seekers’ slightly dipped by 1 000 to 860 000, while those unwittingly unable to seek employment remained consistent at 44,000.

This paints a complex picture of an evolving job market with 4.6 million individuals now identified as part of the potential labour force – those available but not actively seeking jobs or unavailable but seeking employment.

Further examining the metrics of labour underutilisation, the combined rate of unemployment and time-related underemployment (LU2) slightly declined by 0.1 percentage point to 36.5%, while the combination of unemployment and potential labour force (LU3) rose by 0.2 percentage points to 44.0%.

Notably, the comprehensive labour underutilisation measure (LU4), which represents a broader view of those affected by job market fluctuations, remained consistent at 46.3%.

The data have revealed a myriad of trends within different sectors. Employment in the formal industry soared by 268 000, primarily concentrated in Growth sectors such as Finance (111 000 new jobs), Manufacturing (33 000), and Mining (31 000).

However, the informal sector and household employment witnessed declines, with losses of 98 000 and 68 000, respectively. These statistics underline the precarious nature of job creation across various sectors, highlighting the disparities that exist within the South African job market.

Regionally, job gain disparities are pronounced, with provinces like the Western Cape (48 000), North West (45 000), Eastern Cape (36 000), and Gauteng (25 000) leading in job creation.

In contrast, provinces such as Free State and Mpumalanga reported employment downfalls of 34 000 and 30 000, respectively, accentuating the varying economic landscapes across the country.

Amid this challenging climate, youth unemployment reflects a silver lining, as the total number of unemployed individuals aged between 15 and 34 years fell by 23 000 to 5 million.

Interestingly, the number of employed youth showed a slight dip of 5 000 to 5.5 million, which resulted in a marginal decrease in the youth unemployment rate, now at 47.3%.

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Picture: Lubabalo Lesolle / Gallo Images

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