SOUTH AFRICA
SOUTH AFRICA
As the second-largest and the most industrialised economy on the African continent, South Africa stands as a leading country, holding significant regional influence and thereby playing a crucial role in the global achievement of SDG 8 (Government of South Africa & United Nations, 2020, p. 6). South Africa is currently facing stagnant economic growth and significant structural challenges within its labour market, characterised by unsustainable unemployment levels, deep economic and social inequalities, and persistent informal employment (Government of South Africa, 2019, pp. 70-72; Statistics South Africa, 2025). As a result, South Africa has strongly committed to prioritising inclusive, just, and sustainable economic growth in its development strategy over the past few years, making it particularly relevant in the context of SDG 8’s implementation (Government of South Africa & United Nations, 2020, p. 7).
South Africa’s most pressing challenge with respect to economic growth and decent work for all is undoubtedly its extraordinarily high unemployment rate. According to the Organisation for Economic Co-operation and Development (OECD, 2025), over 30% of South African working-age individuals were unemployed in 2025, the highest unemployment rate among G20 countries (pp. 10-11). Unlike many other emerging economies, many people who are excluded from formal occupations in South Africa do not transition into informal employment but remain entirely unproductive, creating a particularly severe form of exclusion from the labour market (OECD, 2025, p. 11).
Moreover, the South African economy is among the most unequal in the world, plagued by systemic discrimination against non-white women and men. Black Africans, Indians, and other coloured people suffer from systematically higher unemployment rates than white individuals (Government of South Africa, 2019, p. 72). The tragic legacy of the apartheid regime has left a dual economy in which racial, gender, and regional disparities in income, wealth, ownership, education, skills, and access to decent employment persist, severely weakening the country’s economic performance as much of its population is unable to fulfill its potential (Government of South Africa & United Nations, 2025, p. 9).
Beyond such disparities, the South African youth are also disproportionately affected by the lack of decent employment opportunities. According to the Government of South Africa (2019), a staggering 53.4% of South Africans aged 15 to 24 were unemployed in 2019 (p. 72). Even more concerning, up to 34.6% of South Africa’s youth was not in employment, education or training in 2024, a figure that has steadily risen over the past ten years (United Nations Department of Economic and Social Affairs [UNDESA], n.d.). As stressed by the Government of South Africa and the United Nations (2025), immediate action is needed to improve inclusion and access to quality education and social services across South Africa’s entire society to eradicate existing inequalities, foster human capital development, and improve the employment opportunities of marginalised groups (p. 7).
In addition, although a large share of the working-age population is completely excluded from the labour market, informal employment continues to be widespread, accounting for 21.4% of all jobs in 2025 (Statistics South Africa, 2025). As highlighted by the International Labour Organization (2015), employment within the informal economy is typically accompanied by precarious working conditions, unregulated working arrangements, and a complete lack of social and legal protection that leave most informal economy workers in an extremely vulnerable position.
The considerable challenges faced in the labour market are also placing a heavy burden on the overall economic performance of the country, as South Africa’s real GDP per capita has stagnated at low levels over the past decade, entering a steady decline from 2023 onwards (OECD, 2025, p. 9; UNDESA, n.d.). Therefore, considerable effort and immediate action are needed to address the structural deficiencies underlying the South African economy and its labour market to secure the achievement of SDG 8’s targets over the coming years.
Government of South Africa. (2019). 2019 South Africa Voluntary National Review: Empowering People and Ensuring Inclusiveness and Equality. United Nations High-Level Political Forum on Sustainable Development. https://hlpf.un.org/sites/default/files/vnrs/2021/23402RSA_Voluntary_National_Review_Report___The_Final_24_July_2019.pdf
Government of South Africa and United Nations. (2020). United Nations Sustainable Development Cooperation Framework: South Africa 2020-2025. https://southafrica.un.org/sites/default/files/2022-06/Final%20signed%20UNSDCF%20-%20Hi%20Res.pdf
International Labour Organization. (2015, March 23). Informal economy: a hazardous activity. Retrieved September 7, 2026 from https://www.ilo.org/resource/other/informal-economy-hazardous-activity
Organisation for Economic Co-operation and Development. (2025). OECD Economic Surveys: South Africa 2025. https://doi.org/10.1787/7e6a132a-en
Statistics South Africa. (2025). How informality Shapes South Africa’s Employment Landscape. Government of South Africa. https://www.statssa.gov.za/?p=19240
United Nations Department of Economic and Social Affairs. (n.d.). Country Profile: South Africa. Retrieved September 7, 2026, from https://unstats.un.org/sdgs/dataportal/countryprofiles/zaf