South Africa’s unemployment rate fell for the first time this year, dropping to 31.9% in the third quarter from 33.2% in the previous period. Job gains were led by the construction, community, and trade sectors, providing a rare boost to an economy grappling with one of the world’s highest unemployment rates.
The decline comes amid challenges, including a 30% US export tariff—the highest in sub-Saharan Africa—shrinking investment, and limited revenue-raising options.
Central bank projections warn that up to 40,000 jobs could be lost next year due to the tariffs, potentially reducing growth by 0.4 percentage points. All eyes are now on the finance minister’s upcoming medium-term budget, which is expected to outline crucial plans for sustaining this fragile momentum and fostering further job creation.