Unemployed graduates sing at Burgers Park before marching to the Union Buildings in Pretoria in a protest against rising unemployment in 2025. (Photo: Gallo Images / Phill Magakoe) /file/attachments/2988/ChatGPTImageFeb17202603_32_31PM_125831.png)
Nolan Wapenaar, the co-chief investment officer at Anchor Capital, says: “The data confirms that employment momentum has stabilised after a weak start to 2025, and broad-based participation suggests the recovery is not confined to a single industry, improving the quality of the improvement. Nevertheless, unemployment remains very high, and SA’s structural challenges/constraints remain, with joblessness disproportionately impacting vulnerable groups, especially the youth and long-term unemployed.”
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Nicky Weimar, Nedbank Group economist, says: “The slowdown in job creation could be attributed to the usual seasonal factors. Some firms close for the festive season and tend to postpone recruitment until the new year. At the same time, export-oriented industries faced headwinds, including subdued demand and higher tariffs. Meanwhile, the labour force shrank as the number of discouraged work seekers increased sharply by 233,000 to 3.7 million people, probably also due to seasonal effects.”
Which sectors were hiring employees?
/file/attachments/2988/sectors_744227.jpg "Source: StatsSA")
The key takeout here is that unemployment numbers are moving in the right direction, but it’s not enough to break out the bubbly just yet. The sad reality is that hiring momentum is slowing, exports are under pressure, and more people are giving up the search. DM