South Africa Loses 230,000 Jobs in Latest Report

South Africa’s formal job market has taken a heavy knock, with official data revealing that a staggering 229,000 positions were lost when comparing the second quarter of 2025 to the same three-month period in 2024. On a shorter-term basis, the first half of 2025 has been no better, with the country losing an additional 80,000 jobs between the first and second quarters. The latest set of figures, drawn from Statistics South Africa’s Quarterly Employment Survey (QES), illustrates the extent to which employment in the country’s regulated business sector has been placed under immense pressure, particularly in areas that provide essential public services.

Key Takeaways

• Massive job losses recorded: South Africa’s formal employment sector lost 229,000 jobs year-on-year and 80,000 jobs quarter-on-quarter, signalling a worsening employment crisis.
• Community services hit hardest: The majority of job losses came from community services, with smaller declines in trade, manufacturing, construction, and transport, while mining and electricity showed minor gains.
• Salaries rise despite cuts: Although jobs were shed, average monthly earnings increased by 3.4% quarter-on-quarter and 6.5% year-on-year, with gross earnings climbing slightly across most sectors.

Quarterly Employment Numbers Point to Industry Strain

The QES reported that overall employment numbers dropped by 0.8% from the first quarter to the second quarter of 2025. This decline took total employment down from 10,589,000 in March 2025 to 10,509,000 by June of the same year. The downward trajectory was primarily driven by job reductions in multiple industries. Community services accounted for the largest fall, with 53,000 fewer positions. The trade industry followed with a contraction of 10,000 jobs, while the manufacturing sector saw employment numbers slip by 9,000. The construction industry lost 7,000 jobs, and both the transport and business services industries reported reductions of 2,000 positions each. Although most industries declined, there were slight gains in a few areas, with mining creating 2,000 additional jobs and the electricity sector expanding by 1,000 roles. This mixed pattern reveals the uneven nature of the economy’s performance, with traditional resource-based sectors offering some growth while service-based fields continue to weaken.

Annual Figures Highlight Deep Job Market Weakness

When examining the year-on-year comparison, the QES showed that total employment declined by 2.1% between June 2024 and June 2025, with total formal jobs falling from 10,738,000 to 10,509,000. This equates to 229,000 fewer workers employed in the space of twelve months. The largest portion of these losses came from community services, where 225,000 positions disappeared, making this sector the clear driver of the overall decline. The manufacturing industry reported a reduction of 18,000 jobs, mining fell by 6,000, transport by 3,000, and trade by 1,000. In contrast, there were small but positive movements in certain sectors. Electricity managed to add 1,000 jobs, while business services recorded an increase of 23,000 positions. The construction industry remained unchanged, showing no overall growth or decline.

Survey Methodologies Provide Different Insights

The Quarterly Employment Survey is based on information collected directly from employers and therefore provides a picture of the number of people formally employed in businesses that are registered in South Africa. The QES does not account for categories such as agriculture, hunting, forestry, fishing, or private households. In comparison, the Quarterly Labour Force Survey (QLFS) is household-based and offers a wider view of the job market, capturing not only formal jobs but also informal work, domestic service, and unpaid family labour. The QES is seen as an effective tool for assessing the performance of South Africa’s formal business sector, while the QLFS is regarded as the best indicator of general labour force conditions and is the main source for calculating the national unemployment rate.

Earnings Increase for Those Who Remain Employed

Although employment fell sharply, workers who managed to remain employed benefited from slightly higher levels of pay. The QES monitors developments across eight broad industries and twenty subcategories, which cover various types of manufacturing along with both government and non-government community and social services. Average monthly earnings rose by 3.4% during the quarter, moving from R28,322 in February 2025 to R29,290 by May 2025. On an annual basis, the increase was even higher, with average monthly earnings rising by 6.5% between May 2024 and May 2025. Gross earnings also recorded a modest increase, climbing by R2.2 billion or 0.2%, from R984.7 billion in March 2025 to R986.8 billion in June 2025. The improvement was largely attributed to increased earnings across community services, trade, construction, transport, mining, electricity, and manufacturing, even as these industries reported job losses. The only sector to show a decline in earnings was business services, which highlights how inconsistent the growth in income has been.

Conclusion

South Africa’s formal job market continues to weaken, with significant losses concentrated in key sectors such as community services and manufacturing, while only small gains in mining and electricity provided limited relief. The trend of consecutive quarterly declines highlights deep structural challenges within the economy, which are compounded by broader unemployment pressures captured in labour force data. Although average salaries have risen modestly, offering some support to those still employed, the overall picture reflects a fragile and shrinking employment base that poses serious risks to growth, household income stability, and long-term economic recovery.