South Africa Formal Sector Loses 14,000 Jobs in Second Quarter
Statistics South Africa reports a loss of 14,000 formal non-agricultural jobs between March and June 2026 amid a broader economic contraction.
The formal non-agricultural sector in South Africa lost 14,000 jobs between March and June 2026, according to data released by Statistics South Africa. This decline follows a steeper loss of 109,000 positions in the first quarter, bringing the total job losses for the first half of 2026 to 123,000. Total employment in the sector dipped to approximately 10.425 million.
Manufacturing saw the sharpest decline with 20,000 jobs lost, followed by business services, trade, and transport. These losses were partially offset by 29,000 gains in community services, particularly within educational institutions and local government. The data indicates a shift toward lower-quality employment; full-time positions fell by 40,000 to 9.33 million, while part-time roles rose 2.4 percent to 1.095 million.
Financial indicators also declined, with gross earnings dropping by R4.8 billion to R1.025 trillion and real average monthly earnings falling 0.4 percent when adjusted for inflation. This labor market contraction coincides with a 0.2 percent contraction in gross domestic product for the second quarter, the first such dip in six quarters. Contributing factors include tepid economic expansion and rising input costs caused by soaring oil prices linked to the US-Iran war. The overall unemployment rate currently stands at 33.6 percent.
