South Africa’s Labour Market Suffers 80,000 Job Cuts

In the second quarter of 2025, South Africa experienced a significant decline in formal employment, with job numbers falling by 80,000. According to the Quarterly Employment Statistics (QES) released by Statistics South Africa (Stats SA), total employment in the formal non-agricultural sector dropped from 10.59 million in March 2025 to 10.51 million by June 2025. This decline reflects ongoing challenges in the country’s labour market and adds to the pressures on an already strained economy.

Sectoral Job Losses

The report highlights that the community services sector suffered the greatest job losses, with 53,000 jobs cut during this period. Other sectors that experienced declines include trade (10,000 jobs), manufacturing (9,000 jobs), and construction (7,000 jobs). Transport and business services sectors each lost 2,000 jobs. In contrast, the mining and electricity sectors reported slight job gains of 2,000 and 1,000 jobs respectively, indicating some pockets of resilience.

Full-Time Job Decline

The number of full-time jobs also decreased by 44,000 from the first quarter of 2025 to the second. This decline in full-time employment is particularly concerning as it reflects a reduction in stable, permanent job opportunities, which are pivotal for economic security among workers.

Unemployment and Labour Market Trends

Alongside falling employment, South Africa’s unemployment rate rose to 33.2% in the second quarter, up from 32.9% in the first quarter. This increase translates to 140,000 more unemployed individuals seeking work, bringing the total unemployed population to approximately 8.4 million. Despite these job losses, the number of people employed increased slightly by 19,000, reflecting some job creation in the formal sector (+34,000) partially offset by declines in informal employment (-19,000).

Economic and Social Implications

The employment decline in key sectors like community services and manufacturing is worrying, as these industries contribute significantly to employment and economic activity. The rise in unemployment intensifies social challenges in a country already grappling with high poverty rates and inequality. Moreover, the reduction in formal sector jobs raises concerns about the quality and stability of work available to South Africans.

The 80,000 job loss in South Africa’s formal non-agricultural sector during Q2 of 2025 underscores persistent economic hardships and labour market weaknesses. The increase in unemployment alongside the loss of full-time jobs paints a challenging picture for the government and policymakers, highlighting the urgent need for strategies to stimulate job creation, support struggling sectors, and provide social protections for vulnerable workers.

This data serves as a critical barometer for South Africa’s economic health and raises questions about future growth prospects amid global uncertainties and domestic structural issues.