Best news about unemployment in South Africa this year

South Africa’s unemployment rate dropped for the first time this year in the third quarter as the construction, community and trade industries added jobs. 

The jobless rate declined to 31.9% in the three months through September, from 33.2% in the prior quarter, according to data released by Statistics South Africa in Pretoria on Tuesday. That’s the lowest since the fourth quarter of 2024.

The outcome is a boost for an economy with one of the world’s highest jobless rates, struggling under a 30% tax on some of its exports to the US — the steepest in sub-Saharan Africa — alongside falling investment and few ways to raise revenue.

The central bank’s modeling shows as many as 40,000 jobs are at risk next year because of the tariffs and may reduce economic growth by 0.4 percentage points.

South African Finance Minister Enoch Godongwana will unveil plans to spur economic growth and reduce unemployment when he delivers his medium-term budget statement on Wednesday.