Rising unemployment and widespread fear of retrenchment are placing growing psychological pressure on South African workers, including those who remain employed.
KwaZulu-Natal's unemployment rate has increased to 33.3%, with eThekwini also recording a rise in joblessness, while the situation remains significantly worse in non-metropolitan areas where nearly one million people are unemployed.
Statistics South Africa's latest Quarterly Labour Force Survey for the third quarter of 2026 shows that 997,000 people were unemployed in non-metropolitan KZN, compared with 363,000 in eThekwini.
The findings highlight a significant difference in employment opportunities between urban and non-metropolitan areas, with rural unemployment almost twice the rate recorded in eThekwini.
The province's overall unemployment rate increased from 32.5% in the second quarter to 33.3% in the third quarter, representing an increase of 0.8 percentage points.
The non-metropolitan unemployment rate also increased from 40.2% to 40.6%, while eThekwini's rate rose from 21.2% to 22.2%.
More people unemployed despite employment gains
The survey shows that KwaZulu-Natal had an estimated working-age population of 7.848 million people between the ages of 15 and 64.
Of these, 4.091 million were part of the labour force, consisting of 2.731 million employed people and 1.360 million unemployed people.
Although employment increased by 6,000 between the second and third quarters, unemployment rose by 51,000.
Compared with the same period last year, the province recorded 26,000 fewer employed people and 82,000 additional unemployed people.
Rural areas face greater employment pressure
Non-metropolitan KwaZulu-Natal had 1.459 million employed people and 997,000 unemployed people in the third quarter.
Its unemployment rate of 40.6% was significantly higher than eThekwini's 22.2%.
The combined rate of unemployment and the potential labour force, which captures people who want work but are not necessarily actively searching, also increased in the province.
KwaZulu-Natal's rate rose from 47.8% to 49.2%, while non-metropolitan areas recorded 55.5%, compared with 39.2% in eThekwini.
Finance sector records employment growth
The finance industry recorded the largest employment increase in KwaZulu-Natal during the quarter, adding 45,000 jobs to reach 474,000.
Community and social services added 23,000 jobs, bringing employment in the sector to 645,000, while manufacturing added 8,000 jobs.
However, construction lost 22,000 jobs, while trade and transport each recorded a decline of 18,000 jobs. Agriculture lost 14,000 jobs.
Construction employment stood at 203,000 in the third quarter, down from 225,000 in the previous quarter.
eThekwini records informal-sector employment losses
The survey also highlights changes in employment patterns in eThekwini.
The metropolitan area recorded 1.272 million employed people in the third quarter, down by 18,000 from the previous quarter.
Formal-sector employment stood at 945,000, while informal-sector employment was estimated at 235,000.
Informal-sector employment declined by 26,000 during the quarter, while formal employment decreased by 4,000.
Despite the quarterly decline, formal-sector employment was 146,000 higher than in the same period last year.
KwaZulu-Natal recorded an unemployment rate of 33.3%, placing it sixth among South Africa's nine provinces.
The Eastern Cape had the highest unemployment rate at 44.3%, followed by the Free State at 39.1% and North West at 38.1%.
The Western Cape recorded the lowest unemployment rate at 19.4%.
The findings place renewed focus on the provincial government's efforts to stimulate economic growth, attract investment and create sustainable employment, particularly in rural communities.