Labour Market Insights From Q3 2025 Offer Employers Strategic Advantages In Sourcing Hidden Talent Potential

Beyond headline unemployment figures, the Q3:2025 QLFS captures underemployment, potential labour force participants, and a more nuanced view of those outside the labour market, revealing millions of South Africans whose potential to contribute to the economy has previously gone unrecognised.

Individuals who are technically employed but working short hours, those available for work but not actively searching, and discouraged jobseekers previously misclassified as ‘not economically active’ represent significant, untapped human capital – and this new visibility is crucial for organisations seeking to understand the full spectrum of available talent.

Scale of opportunity

The survey makes the scale of opportunity clear. Sector-level data highlights where the demand for labour is highest, showing significant employment growth in construction (+130,000), community and social services (+116,000), and trade (+108,000).

In addition, the potential labour force grew by 230,000 to 4.53 million during the quarter. But despite these encouraging figures, the actual labour force fell by 112,000, the number of people outside the labour force increased to 16.9 million, and discouraged jobseekers rose by 36,000.

Artisans, technicians, and trade-skilled professionals remain in high demand, driven by infrastructure development, renewable energy expansion, and continued growth in healthcare, social services, and education. At the same time, digital fluency, critical thinking, and adaptability are increasingly essential across all sectors.

Planning and programmes

This evolving skills landscape reinforces the importance of strategic workforce planning and structured programmes such as work-integrated learning, internships, and targeted development pathways. With even tertiary education graduates struggling to enter the workforce, organisations have an opportunity to bridge the gap by providing entry-level opportunities that emphasise learning, mentorship, and exposure to real work, rather than requiring experience that is often difficult for students to obtain.

In practical terms, organisations that integrate these insights into their recruitment approach position themselves better to build and retain the workforce of the future.

RPO solutions

Recruitment process outsourcing (RPO) solutions align naturally with this deeper labour-market understanding, turning survey data into actionable strategies.

Specialist providers bring market intelligence, sector-specific knowledge, and advanced sourcing capabilities directly into workforce planning, helping organisations to identify underutilised talent and engage with candidates who were previously not seen. RPO partners also provide structured visibility into talent pipelines, allowing businesses to map skills gaps, plan long-term workforce development initiatives, and maintain continuity even in volatile labour markets.

For example, in the technology and digital sectors, RPO expertise can identify high-potential graduates or career-switch candidates who have foundational skills and support them with rapid upskilling to meet sector demand. In trade and construction, RPO providers can design tailored sourcing campaigns that connect apprentices, artisans, and technicians with employers who are actively expanding their workforce.

Similarly, in retail, logistics, and customer experience, RPO partners can create scalable programmes to ensure that entry-level talent is recruited efficiently, trained, and integrated, providing a steady stream of work-ready individuals aligned with organisational needs.

Optimising recruitment

By leveraging analytics and benchmarking, RPO also optimises recruitment spend and improves placement quality, ensuring candidates are not only skilled but culturally aligned and capable of adapting to evolving business requirements.

Over time, RPO-employer partnerships build sustainable talent pipelines that minimise time-to-hire, reduce attrition, and increase workforce agility. They also allow organisations to plan proactively for both labour surpluses and shortages, directly addressing the insights revealed by the survey.

The Q3:2025 QLFS represents a roadmap for strategic workforce planning. By combining survey-driven insights with specialist recruitment expertise, organisations can move beyond reactive hiring and deploy work-ready talent where it is most needed.

This approach strengthens resilience, agility, and competitiveness while also making a measurable impact on bringing South Africa’s hidden and emerging workforce potential into the formal sector.