Total employment decreased by 14 000 or -0,1% quarter-on-quarter, from 10 439 000 in March 2026 to 10 425 000 in June 2026, according to Stats SA's second quarterly employment statistics (QES) released on Tuesday.
The data indicates that manufacturing was the major contributor to the decline in employment.
Matthew Parks Parliamentary Coordinator at Congress of South African Trade Unions (Cosatu) said that the latest (QES released by Statistics South Africa for the 2nd Quarter of 2026, is beyond depressing.
“The job losses for the QES are extremely worrying. The expanded definition of unemployment rose overall by 0.1% to 43.8% with a total decrease in the number of employed persons.”
Parks added that the outlook is likely to be similarly bleak due to the unprovoked war in the Middle East and the devastating impact it has had on international oil and fuel prices.
“This has seen economic growth projections for South Africa for 2026 slashed from an already meagre 1.4% to 1.1%. Inflation for transport has spiked, with food and other essential goods likely to soon follow suit, with inflation having reached 5% in June".
Parks said that they cannot continue to normalise 1% economic growth and dangerously high levels of unemployment, poverty and inequality.
“The extent of this crisis requires a bold and aggressive stimulus package to kickstart the economy, rebuild public and municipal services, make capital affordable and accessible for Small, Medium, and Micro Enterprises (SMMEs) and industrial sectors, and extend relief for the unemployed by expanding public employment programmes.”
Professor Waldo Krugell, an economist at North-West University said that the QES numbers confirm the adverse impact that the fuel price shock has had on the SA economy in the second quarter. “We already saw that GDP growth was negative and unemployment increased. Now the QES shows the job losses in the formal sector.
"The net change in total employment is job losses of 14 000, but for full-time employees, that decrease is 40 000 and then some of that is made up for by increases in part-time employment".
Krugell added that these numbers again show that manufacturing is experiencing a crisis.
“On the earnings side, gross earnings are down. Basic salaries/wages increased a bit, but less than the inflation rate. All together a worrying picture.”
Lara Hodes, an Investec economist said that employment figures were lacklustre in Q2 2026. “The Quarterly Employment Survey results published by Stats SA show that total employment, (excluding agriculture), declined by a further 14 000 or 0.1% q/q”.
Hodes added that specifically, 40 000 full time-positions were shed over the quarter, predominantly in the manufacturing and business services sectors. “While 26 000 part-time jobs were created, these were largely in the community services category.”
Hodes said that Q2 2026's reading reflects the effects of the war in the Middle East, which has weighed on confidence and accordingly businesses likely deferred the hiring of full-time employees in an uncertain climate.
“The QES also provides details on wage developments across economic sectors. Specifically, gross earnings paid to employees across all industry groups fell by 0.5% q/q or R4.8 billion".
Ulrich Joubert, an independent economist, said that the fact that the manufacturing industry was hit hardest suggests that the sector is no longer competitive, and that there are two aspects to this.
“The one is that the manufacturing industry is not competitive in exporting its products to the international market, and, on top of that, perhaps it is not competitive against imports from overseas into our own market".
Joubert added that the other issue is that if there is no growth in the economy and consumers lose their jobs, they will not be able to spend as much.
“We had negative economic growth in the second quarter, which means that consumers can’t buy as much as they did, so that could also have an impact on the manufacturing industry".
Joubert said that he has his own doubts about whether there is a positive government environment for these industries.
“It’s very bad news if you sit within the manufacturing industry and have these sorts of problems and are losing jobs. So, unfortunately, again, I’m still of the opinion that we can’t compete against international industries, for example, the textile industry, because our labour is too expensive and our electricity is too expensive".
yogashen.pillay@nationalmg.co.za