The increase represents a rise of 0.9 percentage points, reflecting a deteriorating labour market despite a growing labour force. The number of unemployed persons increased by 345,000 to reach 8.5 million, while employment decreased by 16,000 to 16.7 million during the same period.
This resulted in an increase of 329,000 (or 1.3%) in the labour force, as more people entered the job market but failed to find work.
Sectoral Employment Trends
The jobs data across industries painted a mixed picture. Employment increases were recorded in Trade (70,000), Construction (39,000) and Finance (11,000). These gains were offset by significant job losses in Community and social services (57,000), Mining (26,000), and Agriculture and Manufacturing (15,000 each).
The formal sector and household sector employment decreased by 41,000 and 9,000 respectively, while the informal sector saw an increase of 34,000 jobs.
Provincial Variations
Regional disparities were evident in the employment data. Mpumalanga (41,000), Eastern Cape (13,000) and Free State (9,000) recorded the highest increases in employment. Conversely, Western Cape (-48,000), Gauteng (-22,000) and North West (-15,000) experienced the largest decreases.
Labour Force Dynamics
Discouraged job-seekers decreased by 227,000 to 3.7 million. Other available job-seekers decreased by 49,000 to 861,000, while unavailable job-seekers decreased by 4,000 to 44,000. This resulted in a net decrease of 280,000 to 4.6 million in the potential labour force—people who are available for work but not actively seeking it, or who are seeking work but not available.
Those outside the labour force for other reasons increased by 72,000 to 12.5 million. The total number of persons outside the labour force decreased by 208,000 to 17.1 million in the second quarter of 2026.
Youth Unemployment Crisis
The data revealed a particularly dire situation for young South Africans. The total number of unemployed youth aged 15 to 34 increased by 264,000 to 5.0 million, while employed youth decreased by 40,000 to 5.6 million. This pushed the youth unemployment rate up by 1.5 percentage points to 47.4% in the second quarter of 2026.
The persistently high youth unemployment rate underscores the structural challenges facing the country's labour market, with young people bearing the brunt of the economic slowdown.
Economic Implications
The rising unemployment figures present a significant challenge for the Government of National Unity, which has made job creation a central pillar of its economic agenda. The data suggests that despite some positive developments in certain sectors, the labour market remains under severe pressure.
The increase in informal sector employment may indicate that formal job opportunities are becoming scarcer, forcing workers into less stable and often lower-paid positions. The declines in formal and household sector employment further highlight the difficulties in creating sustainable, quality jobs.
With reporting from SAnews.gov.za and Statistics South Africa.
