South Africa’s unemployment rate dropped to the lowest level in more than five years in the fourth quarter, as the community and social services and construction sectors added workers.
The jobless rate declined to 31.4% in the three months through December, from 31.9% in the prior quarter, according to data released by Statistics South Africa in Pretoria on Tuesday.
That was the lowest reading since the third quarter of 2020. The median estimate of three economists in a Bloomberg survey was 31.7%.
The dip signals improved economic growth, Investec economist Lara Hodes wrote in a client note.
“A more resilient global economy – than previously anticipated – amidst heightened trade tensions, coupled with progress towards easing structural impediments domestically has seen South Africa’s growth prospects improve.”
Gross domestic product growth for 2026 is expected at 1.5%, accelerating toward 3.5% by 2030, Hodes said.
The stronger jobs data provides a boost
You’ve reached your free article limit
Subscribe to enjoy unlimited access to trusted journalism. Cancel anytime.
Subscribe nowNeed help? molokom@insidepolitic.co.za
