South Africa’s unemployment rate fell to its lowest level in more than five years, the latest sign that the continent’s biggest economy is finally gathering momentum.
But more than 30% of South Africans remain jobless despite broad-ranging government efforts in a country that has one of the highest unemployment rates in the world. Nevertheless, the figures offered a boost to authorities ahead of the unveiling of the country’s budget next week.
Net total employment rose by 21,000 in the last quarter of 2025 compared with the same period a year earlier, largely due to increases in the number of people employed in the transport, social services, and construction industries, the statistics agency said.
Improving electricity supply and easing logistics bottlenecks have also helped bolster the economy, while analysts expect inflation to ease over the course of this year and next. Morgan Stanley economists projected a series of interest rate cuts beginning next month as a result, and forecast that “growth in 2026 is set to improve.” The IMF estimated that the country’s economy will grow by 1.4% this year, a small improvement on last year’s 1.3%.
