South Africa’s official unemployment rate increased to 33.6% in the second quarter of 2026, as the number of jobless people rose sharply, according to the latest Quarterly Labour Force Survey (QLFS).
This news comes as the war in the Middle East has resulted in high fuel costs and soaring inflation that have taken a toll on the economy.
The survey showed that the number of unemployed people increased by 345,000 to 8.5 million between the first and second quarters of 2026. Over the same period, employment declined marginally by 16,000 to 16.7 million.
The combined effect pushed the labour force up by 329,000, resulting in the official unemployment rate, also known as Labour Underutilisation 1, rising by 0.9 percentage points from 32.7% in the first quarter to 33.6% in the second quarter.
The figures highlight ongoing challenges in South Africa’s labour market, as job creation has failed to keep pace with the growing number of people seeking work.
While unemployment increased, the number of discouraged work-seekers fell by 227,000 to 3.7 million. Other available job-seekers declined by 49,000 to 861,000, while unavailable job-seekers fell by 4,000 to 44,000.
As a result, the potential labour force, which includes people available for work but not actively seeking employment as well as those seeking work but currently unavailable, decreased by a net 280,000 to 4.6 million.
Meanwhile, the number of people outside the labour force for reasons other than unemployment increased by 72,000 to 12.5 million. Overall, the total number of people outside the labour force declined by 208,000 to 17.1 million during the quarter.
The survey also tracked broader measures of labour underutilisation, which provide a more comprehensive picture of labour market distress beyond the official unemployment rate.
The combined rate of unemployment and time-related underemployment increased by 0.7 percentage points to 36.6%, while the combined rate of unemployment and the potential labour force rose slightly by 0.1 percentage points to 43.8%.
The broadest measure, the composite labour underutilisation rate (LU4), which includes unemployment, underemployment and the potential labour force, remained unchanged at 46.3% in the second quarter.
The labour underutilisation indicators underscore the extent of labour market challenges facing South Africa, reflecting varying degrees of attachment to the labour market among millions of people who are unemployed, underemployed or have stopped actively searching for work.
- South Africa's official unemployment rate rose to 33.6% in Q2 2026, with the number of unemployed increasing by 345,000 to 8.5 million.
- Employment declined slightly by 16,000 to 16.7 million, pushing the labour force up by 329,000 during the same period.
- The number of discouraged work-seekers decreased by 227,000 to 3.7 million, while other available job-seekers fell by 49,000 to 861,000.
- The potential labour force shrank by 280,000 to 4.6 million, and the composite labour underutilisation rate stayed steady at 46.3%.
- The combined rate of unemployment and time-related underemployment increased to 36.6%, and the combined unemployment and potential labour force rate rose to 43.8%.
While unemployment increased, the number of discouraged work-seekers fell by 227,000 to 3.7 million.
As a result, the potential labour force, which includes people available for work but not actively seeking employment as well as those seeking work but currently unavailable, decreased by a net 280,000 to 4.6 million.
Meanwhile, the number of people outside the labour force for reasons other than unemployment increased by 72,000 to 12.5 million. Overall, the total number of people outside the labour force declined by 208,000 to 17.1 million during the quarter.
