StatsSA Quarterly Labour Force Survey: Q1 2025
In Q1 2025, South Africa saw a drop of 291,000 in employment, bringing the total to 16.8 million. Unemployment rose by 237,000 to 8.2 million, while the labour force shrank slightly by 54,000. The number of discouraged work-seekers grew by 7,000, and those not economically active for other reasons increased by 177,000, raising the inactive population to 16.7 million. As a result, the official unemployment rate rose from 31.9% to 32.9%, while the expanded unemployment rate increased from 41.9% to 43.1%—highlighting a worsening employment situation in the first quarter of the year.
Latest updates snapshot:
Competitor News:
Competitor thought leadership – June 2025
Competitors putting out content include Workforce, MASA, OfferZen, Executive Placements and Phakisa
Incorporating AI into workforce planning – 21st Century
IOL
AI is reshaping workforce planning in South Africa, offering solutions to high unemployment and skills mismatches. With unemployment at 33%, AI-driven tools are improving talent acquisition and operational efficiency. Standard Bank and Shoprite’s implementations show AI can reduce hiring time, improve diversity, and cut costs—critical for national economic growth.
Competitor thought leadership – May 2025
Competitors putting out content include Workforce, MASA, OfferZen, Executive Placements and Phakisa
International companies flocking to South Africa – Robert Walters
BusinessTech
South Africa has become a top offshoring destination, attracting 60% of global business leaders’ preference due to its skilled talent and cost advantages. Key growth areas include tech and support services. Meanwhile, uptake of the new Remote Work Visa remains low, with only 24 issued despite high digital nomad interest.
11 highest demand job skills in South Africa for three years running – Pnet
BusinessTech
Pnet’s Job Market Trends report reveals sustained demand for managerial staff and software developers in South Africa, despite a 4% decline in overall hiring activity since March 2023. Key sectors such as IT, design, and sales show strong growth, with IT professionals commanding high salaries and remote work demand increasing.
Published competitor and industry reports
A history of published reports by competitors and industry sources
New reports from CareerJunction, Pnet and StatsSA.
Sector and Company News:
Climate Investment Funds approve $2.6bn coal-exit plan for South Africa
Engineering News
South Africa’s coal transition plan received renewed support from the Climate Investment Funds, unlocking $2.6 billion in potential financing. This includes an immediate $500 million disbursement and up to $2.1 billion from multilateral lenders. The move revives momentum for the country’s energy transition amid strained US relations and recent international climate policy shifts.
South Africa’s $5.8bn Hive project aims to lead low-cost ammonia output
Engineering News
A $5.8-billion green ammonia project at South Africa’s Coega port aims to produce one-million tonnes annually by 2029, targeting Europe and Asia. Using cheap renewables and existing infrastructure, costs are projected at $650/t—below the $760/t global average—offering strong investor returns and reinforcing South Africa’s role in hydrogen exports.
Government killing one of South Africa’s largest employers
Daily Investor
South Africa’s mining industry shrank 4% quarter-on-quarter in Q1 2025, continuing a long-term decline in output and employment due to regulatory uncertainty, state-owned enterprise failures, and logistical issues. Despite strong commodity prices and a 28% gold price surge, local economic gains remain limited, with investor profits largely stemming from offshore operations.
Manufacturing output down 6.3% y/y in April
Engineering News
South Africa’s manufacturing production fell by 6.3% year-on-year in April 2025, with food, metals, and automotive sectors posting major declines. While output rose 1.9% month-on-month, three-month figures showed a 1.4% decline. Manufacturing sales also dipped 0.7% in April and 0.3% over the latest three-month period.
Sharp decline in building confidence index clouds South African construction outlook
IOL
The FNB/BER Building Confidence Index dropped five points to 36 in Q2 2025, with 65% of construction sector respondents dissatisfied. Residential building activity plunged 8.4% year-on-year, dragging contractor sentiment to 35. In contrast, non-residential construction shows resilience, and quantity surveyor confidence rose to 50—its highest since 2017.
Goodyear intends discontinuing its manufacturing operations in South Africa
IOL
TGoodyear South Africa plans to close its Uitenhage manufacturing plant, potentially affecting 907 jobs. The Eastern Cape, already struggling with a 41.9% unemployment rate, faces further economic strain. Numsa has received a Section 189 notice and pledges to fight job losses and negotiate fair severance for affected workers.
Profmed steps in as 1,800 qualified South Africa doctors face job and healthcare crisis
Zawya
By early 2025, 1,500–1,800 newly qualified South African doctors were unemployed, despite public health sector vacancies of 5–22%. With only 0.31 doctors per 1,000 people, the shortage is acute. Profmed’s finDR platform aims to address this gap through free medical aid and employment support for young healthcare professionals.
Zimbabwe has $9bn plan to join African electricity drive
Moneyweb
Zimbabwe plans to raise over $9 billion to double power production from renewables and expand energy access, with 38% of the population still lacking electricity. As part of the World Bank and African Development Bank’s Mission 300, most funding must come from private investors due to Zimbabwe’s long-standing multilateral debt default.
More than 10 000 new jobs created in Cape Town’s BPO sector over the past year
Engineering News
Cape Town’s BPO sector created 10,427 new jobs between April 2024 and March 2025, contributing R24 billion annually to the Western Cape economy. With initiatives like CapeBPO Academy and school programmes, the city is prioritising youth skills development and workforce readiness to sustain foreign investment and job growth.
South African News and Trends:
Stats SA defends 33% unemployment rate data
BusinessTech
Statistics South Africa defended its unemployment figures—recorded at 32.9% in Q1 2025—after Capitec CEO Gerrie Fourie claimed informal workers were misclassified, suggesting the rate could be closer to 10%. Statistician General Risenga Maluleke rejected this, citing adherence to ILO guidelines and consistent tracking of the informal employment sector.
Double-blow for South Africa
BusinessTech
South Africa’s mining sector contracted 7.8% year-on-year in April—its sixth straight month of decline—driven by a 24% drop in PGMs. Manufacturing also fell 6.3%, signalling deeper economic troubles. Economists now expect 2025 GDP growth below 1.5%, amid logistical bottlenecks, high input costs, and stalled reform implementation.
Employer groups seek urgent interdict against Employment Equity regulations
IOL
Neasa and Sakeliga have notified the Minister of Labour of plans to urgently interdict new Employment Equity regulations, which enforce demographic hiring quotas across sectors. Critics warn of severe economic fallout, citing the rules’ constitutional challenges and risks of legal uncertainty, job losses, and unmanageable compliance for designated employers.
Over 420,000 jobs in South Africa at risk
BusinessTech
South Africa faces rising climate policy risks, with 422,000 export-linked jobs vulnerable to carbon border taxes like the EU’s CBAM, set to begin in 2026. High emissions in metals, automotive, and agriculture sectors threaten competitiveness. Net Zero Tracker urges decarbonisation to protect 1.2 million jobs tied to net-zero trade partners.
New laws for worker quotas to South Africa
BusinessTech
South Africa’s National Labour Migration Policy 2025 introduces sectoral quotas for foreign workers in industries like agriculture, construction, and tourism. Aimed at curbing unemployment, the policy mandates compliance checks, skills transfer plans, and penalties for violations. Enforcement remains a key challenge, despite broad support from labour unions and legal observers.
Businesses in South Africa aren’t happy
BusinessTech
South Africa’s business confidence fell to 40 in Q2 2025, with only 40% of firms satisfied with conditions. Slowing momentum, global trade uncertainty, and local logistical issues weighed heavily. While wholesale trade saw gains, most sectors declined. Economists warn reforms must accelerate to prevent deeper economic stagnation and job losses.
Global News and Trends:
Alphabet CEO expects to keep hiring engineers while AI advances
Moneyweb
Despite industry-wide job cuts due to heavy AI investments, Google CEO Sundar Pichai announced plans to expand engineering hires into 2026, citing AI’s role in boosting productivity. While AI excels in coding, it still makes basic errors. Google pledges to maintain web traffic even as AI-generated content becomes more prominent.
Job interviews enter a strange new world with AI that talks back
Moneyweb
AI-driven job interviews are gaining traction, with startups like Ribbon, HeyMilo and Apriora deploying synthetic voice bots for initial screenings. These tools aim to increase efficiency in high-volume hiring, but concerns remain over glitches, bias, and impersonal interactions. Regulation is growing as companies expand AI use beyond early interview stages.
Global workforce reality check
BusinessTech
Despite record-high global employment in 2024, 57% of workers still live paycheck to paycheck. Over one in five hold multiple jobs, particularly in the Middle East and Africa (34%). Wage growth is not matching inflation, prompting calls for employers to improve benefits, support upskilling, and address real income disparities.
Morgan Stanley plans about 2 000 job cuts to keep a lid on costs
MoneyWeb
Morgan Stanley plans to cut about 2 000 jobs, excluding its 15 000 financial advisers, as part of a cost-cutting effort amidst low attrition. This marks the first major layoff under CEO Ted Pick. The move aligns with broader Wall Street trends amid economic uncertainty and increased automation.
Canada is looking for South Africans with these skills in 2025
BusinessTech
Canada has updated its Express Entry pathway for 2025, prioritising healthcare, education, STEM, agriculture, and trade professionals for permanent residence. South Africans must have six months’ full-time experience in a listed profession within three years and pass a language proficiency test to qualify under the new selection categories.
Meta starts eliminating jobs in shift to find AI talent
MoneyWed
Meta Platforms is cutting 5% of its workforce, affecting 3,600 employees. US-based workers will receive severance of 16 weeks’ pay plus two weeks per service year. The move targets underperformers, reallocating resources to hire top AI talent as Meta invests heavily in its artificial intelligence infrastructure.