South Africa’s unemployment rate dropped in the third quarter of 2025, driven by strong job gains in the construction and services sectors, according to the Statistics South Africa (Stats SA) report released on Tuesday.
The official unemployment rate fell to 31.5% from 32.1% in the previous quarter, marking one of the most significant quarterly improvements in recent years. Stats SA attributed the decline to increased activity in infrastructure projects and private housing developments, which created thousands of new jobs.
“The construction industry has been a bright spot in our economy, showing consistent recovery since 2024,” said Risenga Maluleke, Statistician-General at Stats SA. “We are also seeing gradual improvement in services and trade, reflecting the resilience of the domestic economy.”
As reported by Reuters and Bloomberg, the reduction in unemployment comes amid the government’s efforts to accelerate infrastructure investment and support small contractors. Economists, however, cautioned that sustained progress will require long-term reforms to address structural issues in the labor market.
The construction sector added more than 85,000 jobs during the quarter, followed by notable gains in manufacturing and hospitality, the report showed. Analysts say continued public and private investment could help South Africa maintain its recovery trajectory into 2026.
