WORLD OF WORK: SA unemployment rate rises to 33.6% as Iran war takes economic toll
South Africa’s unemployment rate has remained over 30% for more than five years, with no signs of dropping below that ghastly threshold in the face of sluggish economic growth. But the unemployment story in South Africa is not just a tale of endless woe. While worryingly high everywhere, its geographical distribution is highly unequal.
South Africa's unemployment rate rose to 33.6% in the second quarter of 2026, up from 32.7% the previous quarter. The rise in joblessness is a worrying sign of the impact the ongoing Iran war is having on an economy already struggling even before the conflict began. The number of jobless people increased by 345,000 to reach 8.5 million, with the expanded definition of unemployment climbing to 43.8% from 43.7%.
Investec economist Lara Hodes noted that persistent geopolitical tensions, including the Iran war, have led to elevated global uncertainty, dampening business confidence and expansion decisions. The conflict in the Middle East has also triggered fuel price hikes, straining business revenues and draining jobs from the formal sector.
Even without the war, the unemployment rate would have likely exceeded 30% in Q2 due to sluggish economic growth. While the unemployment rate is high across South Africa, it is highly unequal across regions. The Western Cape has a low unemployment rate of 19.5%, while the Eastern Cape's jobless rate has risen to 47.5%, the highest in the country.
This stark contrast between the two provinces highlights the need for better functioning municipalities and investment to create jobs.
Written by urgent.news from Daily Maverick's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
