Prof. Raymond Parsons

The latest Labour Force Survey, which shows that the overall unemployment rate fell slightly from 33,2% in the second quarter to 31,9% in the third quarter, is welcome news on the jobs front. 

Prof. Raymond Parsons, economist from the North-West University (NWU) Business School, says the latest labour survey for the third quarter of 2025 suggests that if these positive trends can continue, unemployment in South Africa may now have peaked.

“Although unemployment is still unacceptably high, the current economic recovery is now sufficiently supportive to make a modest dent in the overall unemployment picture. Six of the 10 industries tracked by Statistics South Africa recorded employment gains in the third quarter, while four saw decreases,” says Prof. Parsons.

He explains that there is still a long way to go, and there remains no quick fix for unemployment in South Africa.

“It confirms that the official emphasis in both short- and long-term policies must continue to be strongly on promoting job-rich growth, including in the Medium-Term Budget Policy Statement this week. Only when the economy reaches the more robust 3% medium-term gross domestic product growth target of the Government of National Unity will South Africa see an irreversible, sustained large increase in net job creation.”

According to Prof. Parsons, an important driver of job-rich growth is higher capital investment, and investment as a share of the gross domestic product therefore now needs to rise considerably.