The unemployment rate declined by 0,5 percentage points in the fourth quarter of 2025, easing to 31.4% from 31.9% in the previous quarter. Dr Memuna Williams, founder and CEO of Empowering Sustainable Change, notes that whilst South Africa is on an upward trajectory, the growth level isn’t high enough to “lift everybody”. 

This sentiment is echoed by Nolan Wapenaar, Co-Chief Investment Officer at Anchor Capital, who describes the improvement as incremental rather than transformative.

The improvements to economic growth and the labour market in the country point to progress made on major issues that depressed business and industry for many years, like loadshedding and the crises at the ports, adds Williams.

Structural unemployment

South Africa’s unemployment challenge is more structural than cyclical, meaning that it’s a long-term issue caused in the main by a mismatch between labour market skill demands and workers with those skills. Wapenaar warns “unemployment remains very high, and SA’s structural challenges/constraints remain, with joblessness disproportionately impacting vulnerable groups, especially the youth and long-term unemployed”. 

Williams, on the other hand, stresses that South Africa has great technical skills training, but what is lacking are the soft skills, like emotional intelligence, adaptability and creativity that most organisations and businesses need out of the gate from a new employee. 

“In a world characterised by elevated geopolitical tension, weaker global institutions and rising fiscal stress in developed markets, SA is arguably entering one of its more constructive macro backgrounds in a decade. Provided reform momentum is sustained and policy discipline holds firm, we expect to see measurable economic traction, albeit at a slow pace. 

“While the labour market remains weak, at least it is no longer deteriorating,” says Wapenaar positively.

Is entrepreneurship key?

In response to the country’s structural unemployment issue, experts and the government have for years said the answer to the problem lies with entrepreneurship. But does it?

Williams, a specialist in skills and entrepreneurial development, believes that despite prevailing challenges, small businesses still play a pivotal role in society, particularly in job creation and interactions with larger businesses across industries. From local barbers and hairdressers to the makers of artisanal goods like unique jams, breads, and homemade skincare, they all play a special role in society, she says.

The OFM Business Hour previously spoke to renowned chef Kelly Ann Osborn about opening up her own culinary school in Pennington, KwaZulu-Natal. 

The MasterChef judge and South Africa’s youngest Eat Out Rising Star has steadily watched the decline in skills coming into the kitchen over the years. 

She attributes this to a lack of restaurants in which young chefs can be trained whilst at school.

“About 50% of your chef trade course is done through in-service training, which means students are placed in restaurants and hotels. If the standard of the restaurant is not great, if you’re learning to take something out of a box and put it in the oven, then that’s what you’re learning,” explains Osborn. Kayla Ann Osborn. Photo supplied

Over the years, she’s also observed the importance of being able to start your own business from home. The overheads of a new restaurant are “ridiculous”, she quips, and so without a substantive investment, opening your own restaurant, factoring in the overheads, is extremely challenging. 

She encourages student chefs to look into ready meals, baked goods, sourdough, cheeses and chocolates – food that is easy to make at home. These home-based businesses are easy to establish and are quick to scale.  

“I think it’s important that we continue small-scale artisanal food products, because there is a lack of good and well-made products for the public."

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