South Africa employment declined in June, extending a period of weaker formal payroll growth as manufacturing and business services recorded some of the largest job losses.
Formal non-agricultural employment stood at 10.425 million in June 2026, according to the latest Quarterly Employment Statistics. That was down by 14,000 jobs, or 0.1%, from March, and by 95,000 jobs, or 0.9%, from June 2025.
The latest figures show that the formal jobs market remains uneven. Some industries added employees during the quarter, most notably community services, while mining and electricity also recorded modest increases. Those gains were more than offset by declines in manufacturing, business services, trade and transport.
The composition of employment also changed during the quarter. Full-time employment fell by 40,000, while part-time employment increased by 26,000. At the same time, gross earnings declined by 0.5% quarter on quarter but remained 3.5% higher than a year earlier.
The figures provide a detailed view of employment within South Africa’s formal non-agricultural economy and point to continued pressure across several major private-sector industries.
South Africa Employment Falls to 10.425 Million
The June employment reading represents a further decline from the level recorded at the start of the year.
Formal non-agricultural employment was 10.439 million in March 2026, following a revised figure of 10.548 million in December 2025. By June, the total had fallen to 10.425 million.
On an annual basis, employment was also lower.
There were 10.520 million formal non-agricultural jobs in June 2025, meaning the latest figure represents a decline of 95,000 positions over 12 months.
That puts the June 2026 employment level at roughly the same absolute level recorded in June 2022, when formal non-agricultural employment was also about 10.425 million.
The comparison is notable because the employment total has moved through several higher levels since then. Employment reached 10.860 million in June 2023 before declining to 10.738 million in June 2024 and 10.520 million in June 2025.
The latest figures therefore show that the formal employment base has not sustained the gains recorded earlier in the period.
At the same time, the headline number does not tell the entire story. Employment performance differed considerably between industries, while the balance between full-time and part-time employment also shifted.
Manufacturing Accounts for One of the Largest Employment Declines
Manufacturing was one of the clearest sources of weakness in the June employment figures.
Manufacturing employment fell to approximately 1.239 million in June 2026. That was a decline of 20,000 jobs, or 1.6%, during the quarter, and 35,000 jobs, or 2.7%, over the year.
The sector also recorded declines in both full-time and part-time employment.
Full-time manufacturing employment fell by 10,000 during the quarter, while part-time employment declined by a further 10,000. On an annual basis, full-time manufacturing employment was down by 23,000, while part-time employment was 12,000 lower.
The employment declines were spread across several manufacturing activities.
The latest employment statistics point to reductions in areas including food, beverages and tobacco; textiles, clothing and leather; coke and refined petroleum products; chemicals, rubber and plastics; basic metals and fabricated metals; machinery and equipment; office computing machinery; and transport equipment.
The breadth of the declines is significant because manufacturing is a major source of formal employment and remains closely connected to trade, investment, logistics and domestic production.
Despite the decline in headcount, manufacturing gross earnings increased.
Gross earnings in the sector reached approximately R99.825 billion in June, an increase of 1.0% from the previous quarter and 2.0% from a year earlier.
That means the employment decline did not translate into a corresponding fall in the sector’s total wage bill over the same period.
The distinction between employment and earnings is important when assessing the latest numbers. A reduction in employee numbers can occur alongside higher aggregate earnings because of changes in wage levels, hours worked, the composition of the workforce or other payments.
Business Services Also Reduce Employment
Business services recorded the largest annual decline among the major industries covered by the employment survey.
Employment in the sector stood at approximately 2.462 million in June 2026, down by 13,000 jobs during the quarter and 40,000 jobs compared with June 2025.
The annual decline was equivalent to approximately 1.6% of employment in the sector.
Business services is one of the largest sources of formal employment in the economy, making movements in the sector particularly relevant to the overall jobs picture.
The latest decline was concentrated in several activities, including real estate; legal, accounting, bookkeeping and auditing services; other business activities; auxiliary financial intermediation; research and development; and advertising.
The sector’s employment decline was accompanied by a much sharper movement in gross earnings.
Gross earnings fell by R15.510 billion, or 5.3%, quarter on quarter, to approximately R277.963 billion.
Despite that quarterly decline, gross earnings remained 1.5% higher than a year earlier, an increase of approximately R4.140 billion.
The combination of lower employment and lower quarterly gross earnings makes business services one of the more important areas to watch in the next employment release.
Community Services Provide the Main Employment Offset
Not every major industry recorded a decline.
Community services added 29,000 jobs during the quarter, representing a 1.0% increase. Employment in the sector also increased by 35,000 jobs, or 1.2%, year on year.
At approximately 2.846 million employees, community services remained the largest employment category in the June data.
The increase was associated with several parts of the sector, including extra-budgetary institutions, local government, universities and technikons, and other educational institutions.
Community services also recorded one of the largest increases in gross earnings.
Gross earnings rose by R7.774 billion, or 2.3%, during the quarter, reaching approximately R339.343 billion. On an annual basis, earnings increased by R19.009 billion, or 5.9%.
The sector therefore provided an important counterweight to employment declines elsewhere in the formal economy.
However, the increase in community services was not large enough to offset the combined declines in manufacturing, business services, trade and transport.
Trade Employment Declines Despite Higher Earnings
Trade remains one of the country’s largest employers, with approximately 2.314 million people employed in June 2026.
Employment declined by 8,000 jobs during the quarter and by 13,000 jobs compared with June 2025.
The latest decline was mainly associated with motor trade, retail trade, and hotels and restaurants.
Trade therefore contributed to the broader reduction in formal employment during the first half of 2026.
However, the sector’s earnings performance was stronger than its employment performance.
Gross earnings increased by R1.736 billion, or 1.2%, quarter on quarter, reaching approximately R147.096 billion.
On an annual basis, gross earnings increased by R6.233 billion, or 4.4%.
The difference between the employment and earnings data again highlights why the overall jobs picture cannot be assessed using headcount alone.
A sector can lose employees while still recording higher total earnings, depending on changes in remuneration and the composition of its workforce.
Transport Jobs Remain Under Pressure
Transport, storage and communication also recorded lower employment in June.
The sector employed approximately 462,000 people, down by 5,000 jobs, or 1.1%, during the quarter.
Employment was also 13,000 lower than a year earlier, representing a decline of approximately 2.7%.
The annual and quarterly reductions were mainly associated with land transport, transport via pipelines, and post and telecommunications.
Gross earnings followed a similar direction over the quarter, declining by R473 million, or 0.9%, to approximately R51.493 billion.
Despite the quarterly decline, earnings remained 3.5% above the June 2025 level, an increase of approximately R1.735 billion.
The transport figures are relevant because the industry sits between several parts of the economy, connecting producers, retailers, businesses and consumers.
Changes in employment in transport can therefore reflect conditions across several areas of economic activity rather than the performance of a single industry alone.
Construction Records a Small Quarterly Increase
Construction provided another modest source of employment growth.
The sector added 1,000 jobs during the quarter, taking employment to approximately 563,000.
However, employment remained 33,000 lower than a year earlier, representing a decline of approximately 5.5%.
Construction therefore illustrates the difference between short-term quarterly movements and the broader annual trend.
The sector’s employment performance improved slightly between March and June, but the annual comparison remained negative.
Gross earnings increased strongly over the quarter, rising by R1.381 billion, or 3.2%.
At approximately R44.576 billion, however, gross earnings remained 3.2% below the June 2025 level.
The latest figures indicate that construction had not yet reversed the broader annual decline in employment.
Mining Employment Edges Higher
Mining recorded a comparatively stable employment performance.
The sector employed approximately 473,000 people in June 2026, an increase of 1,000 jobs during the quarter and 4,000 jobs over the year.
That represented annual employment growth of approximately 0.9%.
The increase was mainly associated with chrome and platinum group metals mining.
Mining’s employment performance therefore differed from manufacturing, construction, trade and business services, where annual employment remained lower.
However, gross earnings in mining declined during the quarter.
The sector recorded gross earnings of approximately R52.480 billion, down by R758 million, or 1.4%, from March.
Compared with June 2025, gross earnings were nevertheless R2.664 billion, or 5.3%, higher.
Mining consequently recorded modest employment growth alongside stronger annual earnings but weaker quarterly earnings.
Electricity Employment Increases Slightly
The electricity, gas and water sector recorded one of the smallest employment bases in the survey, with approximately 66,000 employees in June.
Employment increased by 1,000 jobs, or 1.5%, during the quarter, while the annual employment figure was unchanged.
The quarterly increase was mainly linked to water collection, purification and distribution.
Gross earnings were approximately R12.285 billion, up marginally from the previous quarter and 7.2% higher than a year earlier.
Although the sector’s employment numbers are relatively small compared with manufacturing, trade or community services, movements in utilities remain relevant because they are closely linked to wider economic activity.
Full-Time Employment Falls by 40,000
One of the most important features of the June employment data was the decline in full-time positions.
Full-time employment stood at approximately 9.330 million, down by 40,000 jobs, or 0.4%, from March.
Compared with June 2025, full-time employment was down by 96,000 jobs, or 1.0%.
The quarterly decline was concentrated in several industries.
Business services recorded the largest decrease, with full-time employment falling by 17,000. Manufacturing followed with a decline of 10,000, while trade lost 7,000 and transport lost 6,000.
Community services recorded a smaller decline of 3,000 full-time jobs.
Electricity employment declined by 1,000, while construction and mining recorded increases of 3,000 and 1,000 respectively.
The annual decline of 96,000 full-time jobs provides an important measure of the underlying change in formal employment.
It also contrasts with the performance of part-time employment.
Part-Time Employment Increases
Part-time employment moved in the opposite direction.
There were approximately 1.095 million part-time employees in June 2026, an increase of 26,000, or 2.4%, from March.
On an annual basis, part-time employment was broadly stable, increasing by approximately 1,000 jobs, or 0.1%.
Community services accounted for most of the quarterly increase, adding approximately 32,000 part-time jobs.
Business services added 4,000, while electricity and transport each recorded smaller increases.
These gains were partly offset by declines in manufacturing, construction and trade.
The increase in part-time employment alongside a decline in full-time employment means the headline employment number does not fully capture the change in the structure of formal work.
Total employment fell by only 14,000 during the quarter, but full-time employment fell by 40,000 while part-time employment increased by 26,000.
That distinction is important when assessing the quality and composition of employment growth.
Gross Earnings Reach More Than R1 Trillion
While employment declined, gross earnings remained above the R1 trillion mark.
Gross earnings paid to employees reached approximately R1.025 trillion in June 2026.
That represented a decline of R4.846 billion, or 0.5%, from March, but an increase of R35.105 billion, or 3.5%, from June 2025.
The annual increase shows that the total wage bill continued to expand despite the decline in employment.
The latest figure also represents a continuation of the longer-term increase in aggregate gross earnings.
Gross earnings stood at approximately:
- R840.3 billion in June 2022
- R917.1 billion in June 2023
- R954.1 billion in June 2024
- R990.0 billion in June 2025
- R1.025 trillion in June 2026
The increase in aggregate earnings over that period occurred alongside a much more limited change in total formal employment.
This suggests that changes in employee remuneration and workforce composition are an important part of the overall labour-market picture.
Basic Wages Continue to Increase
Basic salary and wage payments provided a more positive signal than total gross earnings during the June quarter.
Basic wages and salaries reached approximately R930.123 billion in June.
That was an increase of R15.478 billion, or 1.7%, from the previous quarter.
Compared with June 2025, basic wages were R26.732 billion, or 3.0%, higher.
The increase in basic wages contrasts with the 0.5% quarterly decline in total gross earnings.
The difference is largely reflected in other components of employee compensation, particularly bonus payments.
The June figures therefore show that underlying salary and wage payments continued to rise even as the broader gross-earnings measure declined during the quarter.
Bonus Payments Fall Sharply
Bonus payments recorded a substantial quarterly decline.
Employees received approximately R62.779 billion in bonus payments in June 2026, down by R23.066 billion, or 26.9%, from the previous quarter.
Despite the sharp quarterly decline, bonus payments were still 10.8% higher than a year earlier, an increase of approximately R6.106 billion.
The movement in bonuses helps explain part of the difference between basic wages and total gross earnings.
Basic wages increased during the quarter, while bonuses fell sharply. As a result, total gross earnings declined despite continued growth in regular salary and wage payments.
This is one reason why quarterly changes in gross earnings should be interpreted alongside the underlying wage components.
Overtime Payments Increase
Overtime payments moved in the opposite direction to bonuses.
Overtime payments reached approximately R32.159 billion in June 2026, an increase of R2.742 billion, or 9.3%, from March.
Compared with June 2025, overtime payments were R2.267 billion, or 7.6%, higher.
The increase in overtime payments provided some support to overall employee earnings during the quarter.
Taken together, the figures show three different movements within the earnings data: basic wages increased, bonuses declined sharply, and overtime payments rose.
That combination produced a modest quarterly decline in total gross earnings while keeping the annual growth rate positive.
Average Monthly Earnings Rise to R30,611
Average monthly earnings continued to increase.
Average monthly earnings, including bonuses and overtime, reached approximately R30,611 in May 2026.
That was 2.6% higher than in February 2026 and 4.1% above the May 2025 level.
The increase provides another indication that the earnings environment remained stronger than the employment headline.
While the number of formal employees declined, average monthly earnings continued to rise.
The distinction is particularly relevant when interpreting the economic impact of the employment figures.
A decline in employment does not necessarily mean aggregate household earnings are falling at the same rate. Changes in average remuneration can offset some of the effect of lower employment, although the impact will differ between households and industries.
How the Employment Picture Changed Across Industries
The June employment statistics show a clear division between industries that added jobs and those that reduced payrolls.
Community services recorded the largest quarterly increase, adding 29,000 jobs.
Mining, electricity and construction each added about 1,000 jobs.
On the other side, manufacturing recorded the largest quarterly decline, losing 20,000 jobs.
Business services followed with a decline of 13,000, while trade lost 8,000 and transport lost 5,000.
The resulting change was a net decline of 14,000 formal non-agricultural jobs during the quarter.
The annual comparison is broader.
Business services lost 40,000 jobs compared with June 2025.
Manufacturing lost 35,000.
Construction declined by 33,000.
Trade and transport each recorded annual declines of 13,000.
Against those reductions, community services added 35,000 jobs and mining added 4,000.
Electricity was broadly unchanged.
The distribution of gains and losses shows that the weakness in South Africa employment was not concentrated in one industry alone.
What the June Figures Say About the Jobs Market
The latest employment statistics point to several distinct trends.
First, the overall level of formal employment remains below the level recorded a year earlier.
Second, the decline is concentrated in several large private-sector industries, particularly manufacturing and business services.
Third, full-time employment is falling faster than total employment.
Fourth, part-time employment has increased during the latest quarter.
Fifth, earnings remain higher than a year earlier even though employment is lower.
These trends create a more nuanced picture than the headline employment number alone.
The formal jobs market is not contracting uniformly. Some industries continue to add workers, while others are reducing payrolls.
Similarly, employment and earnings are moving in different directions.
The June figures therefore point to a labour market in which employment growth remains weak but wage and salary payments continue to increase.
Why Manufacturing Matters to Employment
Manufacturing is an important indicator because it links employment to production activity, domestic demand and export markets.
The decline of 35,000 manufacturing jobs over the year is therefore one of the more significant components of the latest employment data.
The weakness was broad-based across several manufacturing activities rather than being confined to a single subsector.
At the same time, manufacturing gross earnings increased by 2.0% annually.
That combination suggests that the sector’s employment and earnings trends were not moving in parallel.
For businesses, investors and policymakers monitoring the labour market, the next releases will help determine whether the June decline represents a temporary movement or part of a longer-running adjustment in manufacturing employment.
Why Business Services Matter
Business services are equally important because they represent one of the largest sources of formal employment.
The sector employed approximately 2.462 million people in June, meaning its annual decline of 40,000 jobs represented a meaningful reduction in the overall employment base.
The decline was spread across professional, financial, property and other business-related activities.
At the same time, annual gross earnings increased by 1.5%.
The combination of lower headcount and higher annual earnings again illustrates the importance of separating employment trends from compensation trends.
The next quarterly employment figures will provide additional information on whether the weakness in business services continues.
Employment Versus Unemployment: Why the Numbers Differ
South Africa has more than one major source of labour-market data, and the measures should not be treated as interchangeable.
The Quarterly Employment Statistics focuses on employment recorded through establishments and payrolls in the formal non-agricultural economy.
The Quarterly Labour Force Survey, by contrast, is a household-based survey covering people’s labour-market status.
The two surveys therefore measure different populations and use different methodologies.
The QES does not include the same range of workers covered by the household-based labour force survey. For example, the broader labour-market measures can include agricultural workers, informal-sector workers, self-employed people and other categories outside the QES coverage.
This distinction matters when interpreting employment statistics.
The QES figure of 10.425 million should therefore be understood as a measure of formal non-agricultural employment captured by that survey rather than a count of every employed person in the country.
The latest QLFS data provide a separate view of the wider labour market. In the second quarter of 2026, the official unemployment rate was 33.6%, while the number of employed people declined by 16,000 from the first quarter to 16.7 million.
Those figures are not directly comparable with the QES employment total because the surveys have different coverage and methodologies.
Together, however, they provide complementary information about the labour market.
The Longer-Term Employment Trend
The June 2026 figure is particularly notable when placed against recent years.
Formal non-agricultural employment stood at approximately:
| Period | Employment |
|---|---|
| June 2022 | 10.425 million |
| June 2023 | 10.860 million |
| June 2024 | 10.738 million |
| June 2025 | 10.520 million |
| June 2026 | 10.425 million |
The data show that employment rose substantially between June 2022 and June 2023 before declining over the following three years.
By June 2026, the employment total had returned to approximately the same level recorded four years earlier.
The composition of employment may nevertheless have changed over that period.
The same is true of the balance between full-time and part-time employment.
Full-time employment stood at approximately 9.330 million in June 2026, compared with 9.277 million in June 2022.
Part-time employment, meanwhile, was approximately 1.095 million in June 2026 compared with 1.148 million in June 2022.
These figures show why long-term comparisons need to consider more than the total employment number.
The Full-Time Employment Trend Is More Significant
The full-time employment data provide an additional perspective on the direction of formal jobs.
Full-time employment has moved from approximately 9.277 million in June 2022 to 9.330 million in June 2026.
That represents relatively limited net growth over four years.
More recently, the direction has been negative.
Full-time employment fell by 96,000 jobs year on year in June 2026.
The decline was particularly pronounced in business services and manufacturing.
This makes the full-time employment measure an important indicator to monitor in upcoming quarters.
If full-time employment remains under pressure while part-time employment continues to rise, the structure of the formal workforce could continue to shift.
What the Earnings Data Mean for Employees
The increase in average monthly earnings provides a different perspective from the employment numbers.
Average monthly earnings reached R30,611 in May 2026, up 4.1% year on year.
Basic wages were also 3.0% higher than a year earlier.
However, changes in average earnings do not mean every employee received the same increase.
Average monthly earnings are an aggregate measure and can be affected by changes in the composition of the workforce, wage adjustments, hours worked, bonuses and overtime.
The sharp fall in quarterly bonus payments demonstrates how individual components can materially change total earnings from one quarter to another.
For that reason, the 4.1% annual increase in average monthly earnings should be viewed as an economy-wide measure rather than an indication of a uniform increase in employee pay.
What to Watch in the Next Employment Release
The next employment data will be important for several reasons.
The first is whether manufacturing employment continues to decline.
The sector lost 35,000 jobs over the year to June, making it one of the largest contributors to the overall decline.
The second is business services.
The sector lost 40,000 jobs over the year and recorded a R15.5 billion quarterly decline in gross earnings.
The third is the balance between full-time and part-time employment.
A continued decline in full-time jobs alongside rising part-time employment would indicate that the structure of employment is changing even if the headline total remains relatively stable.
The fourth is community services.
The sector added 35,000 jobs over the year and 29,000 during the quarter. Whether that growth continues will influence the overall employment balance.
Finally, earnings will remain important.
Basic wages increased in June, while bonuses fell sharply and overtime increased. The interaction between these components will determine the direction of total gross earnings in subsequent releases.
South Africa Employment Outlook Remains Mixed
The June 2026 employment data present a mixed picture.
Formal non-agricultural employment declined to 10.425 million, with the total down 14,000 from March and 95,000 from a year earlier.
Manufacturing, business services, construction, trade and transport recorded annual declines.
Community services, mining and electricity provided some support, while construction recorded a modest quarterly increase despite remaining below its year-earlier employment level.
At the same time, full-time employment fell by 40,000 during the quarter and 96,000 over the year.
Part-time employment increased by 26,000 during the quarter.
The earnings data were more resilient. Gross earnings increased by 3.5% annually to R1.025 trillion, basic wages rose by 3.0%, and average monthly earnings increased by 4.1%.
The result is a formal jobs market that is weaker in terms of employment numbers but continues to show growth in several measures of employee compensation.
For businesses and investors, the industry breakdown is likely to be more informative than the headline number alone. Manufacturing and business services remain key areas of weakness, while community services has provided a significant offset.
For employees and households, the distinction between full-time and part-time work and the movement in average earnings will remain important indicators of how the labour market is changing.
Frequently Asked Questions About South Africa Employment in June 2026
How many formal jobs were recorded in June 2026?
Formal non-agricultural employment stood at approximately 10.425 million in June 2026.
How much did South Africa employment decline in June 2026?
Formal non-agricultural employment declined by 14,000 jobs, or 0.1%, quarter on quarter, from March to June 2026.
How many jobs were lost over the year?
Formal non-agricultural employment declined by approximately 95,000 jobs, or 0.9%, between June 2025 and June 2026.
Which industry lost the most jobs over the year?
Business services recorded the largest annual decline, with employment falling by approximately 40,000 jobs. Manufacturing followed with a decline of approximately 35,000 jobs.
Which industry added the most jobs?
Community services recorded the largest increase, adding approximately 29,000 jobs during the quarter and 35,000 jobs over the year.
Did full-time employment increase or decrease?
Full-time employment decreased by approximately 40,000 jobs during the quarter and 96,000 jobs year on year.
Did part-time employment increase?
Yes. Part-time employment increased by approximately 26,000 jobs, or 2.4%, during the quarter, reaching about 1.095 million.
Did employee earnings increase?
Gross earnings declined by 0.5% quarter on quarter but increased by 3.5% year on year to approximately R1.025 trillion.
What happened to average monthly earnings?
Average monthly earnings increased by 2.6% quarter on quarter and 4.1% year on year, reaching approximately R30,611 in May 2026.
Is the QES employment figure the same as the country’s total employment figure?
No. The QES measures formal non-agricultural employment through an establishment-based survey. It is different from the household-based Quarterly Labour Force Survey, which covers a broader range of employment categories.
Conclusion
South Africa employment weakened further in June 2026, with formal non-agricultural employment falling to 10.425 million.
The 95,000-job annual decline was concentrated in several major industries, with business services and manufacturing recording the largest losses. Construction, trade and transport also remained below their year-earlier employment levels.
The decline was partly offset by stronger employment in community services, while mining and electricity recorded smaller increases.
The composition of employment also shifted. Full-time employment declined by 96,000 jobs over the year, while part-time employment was broadly unchanged annually but increased during the quarter.
The earnings picture was more resilient. Gross earnings remained above R1 trillion and were 3.5% higher than a year earlier, while basic wages and average monthly earnings also increased.
The June data therefore point to a labour market where the number of formal jobs remains under pressure, but employee compensation continues to grow.
The next employment releases will show whether the declines in manufacturing and business services persist, whether community services can continue to offset losses elsewhere, and whether the recent increase in part-time employment represents a broader change in the structure of formal work.
For now, the latest employment statistics point to a formal jobs market that is experiencing uneven performance across industries, with the headline employment total moving lower even as several measures of earnings continue to rise.
