The Quarterly Labour Force Survey (QLFS) serves as a tool for evaluating the labour market by tracking economic activity among individuals aged 15 to 64. Last year, Statistics South Africa announced updates to the survey questionnaire to align it with standards set by the International Labour Organization.
These updates include definitional changes, such as redefining the informal sector to focus solely on business registration rather than the size of the enterprise.
The report indicates that between October and December 2025, employment increased by 44,000, reducing the unemployment rate by 0.5 percentage points to 31.4%.
The survey also shows that the utilities sector experienced the highest quarter-to-quarter employment growth at 22.4%, while the manufacturing sector declined by 3.8% over the same period.
According to Professor Haroon Bhorat, Professor of Economics and Director of the Development Policy Research Unit, these figures suggest that the economy is moving in a positive direction.
“There is a decline in the unemployment rate from 31.9% to 31.4%. Still inordinately high, but moving in the right direction. The main drivers of this decline appear to be job creation,” Professor Bhorat stated.
While the increase in employment is a positive signal for the economy’s future, he cautioned that declines in manufacturing, mining, and wholesale and retail trade remain concerning.
“A particularly important signal is the rise in jobs in construction, financial, and business services. These are key indicators of formal sector employment growth. The decline in manufacturing, mining, and wholesale and retail trade is a concern, but overall, this is a positive outcome, indicating at least short-term economic growth,” explained the economist.
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