South Africa’s formal employment sector lost 14,000 jobs between March and June 2026, extending a broader decline that has seen formal employment fall by about 95,000 positions over the past year.
The latest figures released on Tuesday by Statistics South Africa (Stats SA) showed that total formal sector employment fell to about 10.4 million workers during the period, reflecting continued weakness across several key areas of the economy.
Manufacturing, business services, trade and transport recorded the largest employment declines during the quarter, highlighting the challenges facing sectors that account for a significant share of formal employment.
The latest losses have renewed concerns over the state of South Africa’s labour market, which continues to face pressure from sluggish economic growth, energy challenges and weak business confidence.
The employment decline comes as the country grapples with one of the world’s highest unemployment rates.
Stats SA reported that South Africa’s official unemployment rate increased to 33.6 per cent in the second quarter of 2026, leaving about 8.5 million people without jobs.
Young South Africans continue to bear a disproportionate share of the employment crisis. The unemployment rate among people aged between 15 and 34 rose to 47.4 per cent during the quarter, underscoring persistent difficulties in absorbing young people into the formal economy.
Economists have warned that reversing the trend will require stronger and sustained economic growth, increased investment and improved performance in labour-intensive sectors.
Manufacturing, trade and services are considered particularly important for broad-based job creation because of their capacity to absorb workers across different skill levels.
The latest figures therefore add to pressure on policymakers to create conditions that can encourage private-sector investment, improve business confidence and support industries capable of generating sustainable employment.
