Stats SA Overhauls Unemployment Data Collection
New Methodology Aims for Greater Accuracy, Including Informal Sector
South Africa’s approach to measuring unemployment is set for a significant overhaul starting August 2025. Statistics South Africa (Stats SA) is introducing a revised Quarterly Labour Force (QLF) questionnaire to capture a more comprehensive picture of the nation’s workforce.
Refined Employment Definition Sparks Debate
The changes stem from persistent criticism, notably from Capitec founder **Gerrie Fourie**, who has called for a more accurate reflection of the informal economy. This revised definition of employment now focuses on work performed “for pay or profit and mainly intended for others.”
Key adjustments include the exclusion of subsistence agriculture and other own-use production work from the official employment figures. A new framework will now categorise work into five distinct forms: own-use production work, employment, unpaid trainee work, volunteer work, and ‘other-work activities.’ Furthermore, the previous ‘job-search’ criteria are no longer considered valid for defining unemployment.
Introducing the ‘Potential Labour Force’
Stats SA will also provide a new ‘potential labour force’ figure. This category will encompass individuals who are not currently in the labour force but are available for employment, even if they are not actively seeking it. The statistical agency asserts this represents a world-first in defining ‘work.’
The official unemployment rate stood at 33% in the first quarter of 2025. However, with the informal sector, estimated to be worth over R700 billion, often uncounted, some experts suggest the actual unemployment rate could be closer to 10%. This new methodology seeks to bridge that gap.
The Organisation for Economic Co-operation and Development (OECD) reported in its latest survey that South Africa’s informal sector contributes significantly to job creation, estimating it accounts for nearly 40% of total employment in some developing economies. This underscores the importance of the revised Stats SA methodology.
South Africa’s unemployment rate remains a critical challenge. The proposed changes by Stats SA aim to paint a more realistic picture of the labour market, especially concerning the informal sector. #StatsSA #Unemployment #SouthAfrica pic.twitter.com/XXXXXXXXXX
— News Wire SA (@NewsWireSA) August 15, 2025
