(Foto: Unsplash)
The trade union Uasa warns that rising fuel prices and global uncertainty could cause even more job losses.
South Africa’s unemployment crisis further worsened in the first quarter of 2026 after 345,000 jobs were lost and the number of working people decreased to 16.8 million.
According to the latest quarterly workforce survey from StatsSA, the official unemployment rate now stands at 32.7% – an increase of more than one percentage point compared to the previous quarter.
Uasa says the worsening figures are the result of widespread job losses in most sectors, together with thousands of matriculants who entered the labor market at the beginning of the year.
“The country’s unemployment rate remains one of the highest in the world,” said Uasa spokesperson Abigail Moyo.
According to the trade union, seven out of ten economic sectors lost jobs in the first quarter. Uasa also warns that the situation could deteriorate further after businesses experience increasing pressure due to high fuel prices and other economic challenges.
“These economic crises can force companies to lay off even more employees as they struggle to cover operating costs,” said Moyo.
Uasa says the unemployment figures represent not just statistics, but millions of South Africans who live with uncertainty and discouraged job seekers who have lost hope.
Argieffoto (Photo: Tanja Mason/Pixabay)
Prof. Raymond Parsons from the NWU’s business school meanwhile warns that the negative unemployment figures are an early warning sign of the impact that the global energy crisis is having on the South African economy.
“The longer the conflict in Iran continues, the greater the risk to economic growth and employment for the rest of the year,” says Parsons.
He says it is therefore in South Africa’s economic interest that the war between the USA and Iran be ended soon.
Parsons says the South African economy still shows a degree of resilience, but that the country’s economic buffers are limited. According to him, economic growth is particularly held back by insufficient infrastructure development and too low levels of fixed investments.
He also says that an important factor that will affect business and consumer confidence this year is whether the Reserve Bank will increase interest rates to combat rising inflation.
The Reserve Bank’s monetary policy committee meets again on 28 May.
Maroela Media earlier reported that the latest quarterly employment survey shows that there are now 16.8 million employed people, while the number of unemployed people stands at 8.1 million.
Unemployment among young people (15 to 34 years) rose by 181,000 to 4.7 million in the first three months of the year, pushing the youth unemployment rate to 45.8%.
Discouraged jobseekers increased by 178,000 to 3.9 million. Other available jobseekers increased by 55,000 to 910,000 and unavailable jobseekers increased by 6,000 to 49,000. This is a net increase of 240,000 to 4.9 million of the possible workforce.