CAPE TOWN – The Western Cape has achieved the lowest unemployment rate in South Africa, recording 19.7% in the third quarter of 2025, significantly below the national average of 31.9%, according to Statistics South Africa’s latest Quarterly Labour Force Survey (QLFS).
The province also led the country in job creation, adding 70,000 new positions during the quarter – the highest employment increase of any province. The figures represent a substantial gap between the Western Cape and other provinces, with the next-best performing region recording unemployment rates well above 20%.
Strong labour market performance
Beyond the headline unemployment figure, the Western Cape demonstrated robust labour market indicators across multiple metrics. The province’s expanded unemployment rate – which includes discouraged job seekers who have stopped actively looking for work – stands at 25.8%, lower than any other province’s narrow unemployment rate.
The Western Cape achieved a labour absorption rate of 54.7%, meaning more than half of all working-age residents are employed. This compares favourably to national averages and indicates the province’s economy is effectively creating opportunities for its growing population.
The labour force participation rate reached 68.1%, matching Gauteng as the most economically active population in the country. This suggests residents remain optimistic about employment prospects and continue seeking work opportunities.
Sectoral growth drives employment
The employment gains were broadly distributed across key economic sectors. Construction, trade, and finance all recorded significant job increases during the quarter, reflecting what economists describe as healthy diversification in the provincial economy.
The construction sector’s performance particularly stands out given the challenges facing the industry nationally, with infrastructure projects and residential development contributing to employment growth.
National context
Nationally, South Africa’s unemployment rate declined by 1.3 % points to 31.9%, indicating broader economic recovery efforts are showing results. However, the country continues to grapple with one of the world’s highest unemployment rates, making the Western Cape’s performance particularly significant.
The results come during a period of global economic uncertainty, with ongoing geopolitical tensions and rising input costs affecting markets worldwide. Despite these headwinds, the Western Cape has maintained consistent employment growth.
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Political response
Noko Masipa, the Democratic Alliance’s Western Cape spokesperson on Agriculture, Economic Development and Tourism, attributed the results to the province’s Growth for Jobs strategy.
“These results are proof that focused, evidence-based policies work,” Masipa said. “Through the Growth for Jobs strategy, the DA is building a stronger, more inclusive economy that prioritises opportunity, stability, and innovation.”
The DA, which governs the Western Cape, has consistently highlighted the province’s economic performance as evidence of its policy effectiveness compared to other provinces governed by different parties.
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The Quarterly Labour Force Survey is conducted by Statistics South Africa and provides the official measure of employment and unemployment in the country. The survey covers all nine provinces and provides both narrow and expanded definitions of unemployment
