Steady Growth, Stronger Jobs: Employment and Labour Minister welcomes positive Q4 GDP performance

The Department of Employment and Labour notes the latest GDP figures released by Statistics South Africa, which show that South Africa's economy grew by 0,4% in the fourth quarter of 2025. This is the second consecutive quarter of positive growth, signalling a modest yet encouraging recovery across several labour-absorbing industries. The Minister of Employment and Labour, Ms Nomakhosazana Meth, welcomed the results, stating: "The latest GDP numbers show that while the economy continues to face structural challenges, South Africans in many sectors are working hard to keep our country moving forward. Our labour market is beginning to show signs of stabilisation, and we are encouraged by the resilience demonstrated across industries that employ millions of workers. This means South Africa grew by 1.1 percent in 2025, maintaining its position as Africa's largest economy ahead of Nigeria and Egypt.

According to GDP data, several key employment-linked sectors strengthened during the quarter. Personal services grew by 0,4%, supported by community and other social service activities that provide livelihoods to thousands of workers nationwide. General government services also rose by 0,4%, largely driven by increased employment in provincial and local government structures. Minister Meth noted the significance of this trend, saying: "The public sector continues to play a critical role not only in service delivery but also in sustaining jobs in many communities. These gains reflect government's commitment to strengthening capacity where it is needed most."

The trade, catering and accommodation industry, one of the country's largest employers, expanded by 0,9%, reporting higher activity in wholesale, retail, motor trade, food and beverages, and accommodation services. The uptick is important for the department because growth in the trade and hospitality sectors is especially meaningful. After all, these industries create opportunities for young people, women, and entry-level workers. When this sector grows, the impact is felt directly in households. Finance, real estate, and business services also showed strong growth of 1,4%, contributing the largest share (0,3 percentage points) to overall GDP performance, driven by increased activity across business and financial service categories.

Agriculture, forestry, and fishing recorded growth of 0,4%, supported by increased activity in field crops and horticulture products. The value of this consistency is that agricultural workers remain the backbone of food security. The continued stability in this sector is vital not only for rural employment but also for national resilience.

However, the Department remains concerned about contractions in key labour-intensive sectors, particularly manufacturing, which declined by 0,6% as eight of ten manufacturing divisions reported negative growth. Transport, storage, and communication also recorded decreases, influenced by weakening land transport and support services. Addressing these areas of weakness directly, the Minister stated: "We cannot ignore the pressures facing manufacturing and transport, the very sectors that historically absorbed large numbers of skilled and semi-skilled workers. Our department will intensify its partnerships with industry and labour to support retraining, upskilling, and job-preservation measures where possible."

Household consumption continued its upward trend, increasing by 1,2% in Q4 2025 and marking the seventh consecutive quarter of growth, driven by broad improvements across durable, semi-durable, and non-durable goods as well as services. This is a sign of cautious optimism: improved household spending indicates that more families are regaining some financial stability. This is an early indicator that employment levels and worker confidence are slowly strengthening.

Looking ahead, Minister Meth also noted the upcoming rebasing of national accounts planned for later in 2026, by Stats SA in collaboration with the South African Reserve Bank, which will refine economic measurement and support more targeted planning in line with international best practice. She concluded: "These GDP numbers remind us that progress is possible, with continued collaboration between government, business, labour, and communities, we can build an inclusive labour market that leaves no worker behind."

For media enquiries, please contact:

Teboho Thejane

Departmental Spokesperson

082 697 0694/ [email protected]

-ENDS-

Issued by: Department of Employment and Labour

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