The SA city with the lowest unemployment rate in the country
New Stats SA data has shown that the one SA city with the lowest unemployment rate also added 113 000 jobs year-on-year in Q4 2025.
The City of Cape Town has recorded the lowest unemployment rate among South Africa’s major metros, with joblessness falling to 19.8% in the fourth quarter of 2025.
According to Statistics South Africa’s Quarterly Labour Force Survey (QLFS) for Q4 2025, Cape Town added 113 000 jobs year-on-year, the highest increase among the country’s metropolitan municipalities.
Employment in the city has now reached a record 1.895 million people, marking the highest level ever recorded in the metro.
Unemployment rate below 20% for the first time since 2009
Cape Town’s unemployment rate has also dropped below 20% for the first time since 2009. The metro also reported improvements across key indicators, including:
- Labour participation rate
- Absorption rate
- Overall employment levels
- A decline in unemployment
The strong fourth-quarter performance is believed to have been supported in part by growth in the tourism sector.
Mayor Geordin Hill-Lewis said the city has added 470 000 jobs during the current local government term.
The metro has committed to investing R40 billion in infrastructure over three years, with 75% of that spending aimed at benefiting lower-income households.
Alderman James Vos said the city’s focus on high-growth sectors, including manufacturing, tourism, hospitality, construction, technology and financial services, is contributing to job creation.
While the city continues to lead nationally, officials acknowledged that further progress is needed to reduce unemployment levels and expand opportunities across communities.
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