JOHANNESBURG, Sept. 29 (Xinhua) -- South Africa's formal sector lost 123,000 jobs in the first half of 2026 while real worker earnings continued to decline, official data showed Tuesday, underscoring persistent economic headwinds.
According to Statistics South Africa's (Stats SA) Quarterly Employment Statistics, formal non-agricultural employment decreased by 14,000 quarter on quarter to about 10.42 million in the second quarter (Q2), following an upwardly revised loss of 109,000 jobs in Q1. Year on year, the sector shrank by 95,000 positions.
Manufacturing recorded the steepest contraction in Q2, shedding 20,000 jobs, or 1.6 percent, with cuts spanning food and beverages, textiles, chemicals, metals, and transport equipment. Business services lost 13,000 jobs, trade dropped by 8,000, and transport contracted by 5,000.
Conversely, community services added 29,000 jobs, primarily driven by recruitment in local government, universities, and educational institutions. Mining, electricity, and construction each added 1,000 jobs.
The small net drop in Q2 masked a shift toward lower-quality employment. Full-time positions fell by 40,000 to 9.33 million, while part-time jobs rose by 26,000 to 1.095 million.
Average monthly earnings reached 30,611 rand (about 1,860 U.S. dollars) in May, up 4.1 percent year on year in nominal terms. However, adjusted for inflation, real average earnings fell by 0.4 percent.
Gross employee remuneration dropped 0.5 percent quarter on quarter to 1.025 trillion rand in Q2, driven by a 26.9 percent plunge in bonus payments, primarily in the financial and business service sectors.
The labor market weakness aligns with a broader economic downturn. Stats SA previously reported that South Africa's gross domestic product contracted by 0.2 percent in Q2, while the overall unemployment rate climbed to 33.6 percent, leaving 5 million youth out of work. ■