South Africa’s formal job market shrank by 14,000 jobs between March and June 2026, extending a broader downturn that has seen formal employment decline by 95,000 positions over the past year.
According to the latest employment data published by Statistics South Africa (Stats SA), the losses reduced total formal sector employment to about 10.4 million workers in a move that shows persistent weakness in key industries despite efforts to stimulate economic growth.
The hardest-hit sectors during the quarter were manufacturing, business services, trade and transport, all of which recorded employment declines.
The latest figures add to concerns about the health of South Africa’s labour market, which continues to struggle against sluggish economic growth, energy constraints and weak business confidence.
The decline in formal employment comes against the backdrop of one of the highest unemployment rates in the world.
Statistics South Africa reported that the country’s official unemployment rate rose to 33.6 percent in the second quarter of 2026, with 8.5 million people out of work.
South Africa’s youth remain particularly affected, with nearly half of people aged 15 to 34 unable to find work. The youth unemployment rate climbed to 47.4 percent in the second quarter.
Economists have long warned that sustained job creation will require faster economic growth, higher levels of investment and stronger performance in labour-intensive sectors such as manufacturing, trade and services.
JN/APA