South Africa’s formal labour market weakened during the first quarter of 2026, with the country losing approximately 80,000 formal sector jobs as employment declined across several key industries, according to the latest Quarterly Employment Statistics released by Statistics South Africa (Stats SA).
The report shows that formal employment fell from 10.5 million workers in December 2025 to 10.4 million by the end of March 2026, highlighting the continued pressure facing businesses despite signs of recovery in selected sectors.
While manufacturing, business services, mining and construction recorded modest employment gains, these increases were outweighed by substantial job losses in community services, trade and transport.
The Quarterly Employment Statistics tracks employment trends among registered formal businesses and provides one of the country’s key indicators of labour market conditions.
Community services and trade record the biggest losses
Community services experienced the sharpest decline, shedding 53,000 jobs during the quarter. The trade sector followed with 40,000 fewer positions, while transport lost 3,000 jobs and the electricity sector declined by 1,000.
By contrast, manufacturing created 7,000 new jobs, matching gains in business services. Mining added 2,000 positions and construction contributed a further 1,000 jobs.
Full-time employment also declined, falling by 24,000 jobs between December 2025 and March 2026. The largest reductions were recorded in trade, community services, transport, manufacturing and construction.
Business services was the strongest-performing sector for full-time employment, adding 8,000 positions, while mining expanded by 2,000 jobs.
Part-time employment recorded an even steeper decline, dropping by 56,000 jobs during the quarter. Community services accounted for most of the decrease with 50,000 fewer part-time positions, followed by trade with a loss of 13,000 jobs. Manufacturing and construction were the only sectors to post meaningful gains in part-time employment.
Employee earnings also decline
The weaker labour market was accompanied by lower employee earnings.
According to Stats SA, total gross earnings paid by employers fell by R43.4 billion, declining from R1.08 trillion in December 2025 to R1.04 trillion in March 2026.
Basic salaries and wages also decreased by R6.9 billion over the same period, while employee bonuses experienced a much larger decline, dropping by R35.8 billion to R85.3 billion.
Overtime payments also fell, decreasing by R700 million as employers continued to manage labour costs amid challenging economic conditions.
Despite these declines, average monthly earnings increased slightly by 0.9%, rising from R29,738 in November 2025 to R29,997 in February 2026.
South Africa continues to face one of the world’s highest unemployment rates, and economists have repeatedly stressed that stronger economic growth and increased private-sector investment will be essential to generate sustainable employment opportunities over the longer term.
Source: Adapted from Statistics South Africa (Stats SA) Quarterly Employment Statistics.