SA records 80 000 job losses in three months as economists warn of weak economic growth

South Africa’s formal sector shed 80 000 jobs in the second quarter of 2025, a 0.8% decline from March, raising renewed concerns about the country’s stubbornly high unemployment levels.

Statistics South Africa (Stats SA) reported on Tuesday that total employment fell from 10.59 million in March to 10.51 million in June.

The sharpest losses came from community services, trade, manufacturing, construction, transport, and business services. Mining and electricity were the only industries to record gains.

Year-on-year, employment dropped by 229 000 jobs, or 2.1%.

Full-time employment also contracted by 44 000 jobs during the quarter, driven by losses in community services, business services, manufacturing, construction, trade and transport, while part-time employment fell by 36 000 jobs.

Economists said the figures underline South Africa’s persistent jobs crisis.

North-West University Business School’s Professor Raymond Parsons warned that unemployment will remain unsustainably high until economic growth accelerates.

“Ultimately only much higher inclusive GDP growth can successfully address this serious challenge. Unemployment is too high because economic growth is too low," Parsons said.

"It again highlights the need to inject more urgency and direction into growth-friendly reform policies that can make a difference.”

His colleague, Professor Waldo Krugell, described the results as grim but unsurprising.

“When the economy hardly grows, we cannot expect much job creation. 80 000 jobs lost quarter to quarter is a lot. And the 174 000 year-on-year is staggering,” Krugell said.

Unisa economist Dr Eliphas Ndou linked the job losses to weak sentiment.

“Business and consumer confidence indices have displayed waning confidence due to weakening domestic conditions and expectations of weak global economic growth. The decrease in total employment is a symptom of weak growth and lingering trade and policy uncertainty,” he said.

Investec economist Lara Hodes echoed the view, saying the data reflects “a subdued domestic economy,” with six of the eight industries surveyed showing declines.

“Compared to the same period last year, employment declined by a notable -2.1%. Quarter-on-quarter declines were logged in six of the eight industries included in the survey, with the outcome reflective of a subdued domestic economy," Hodes said.

"Elevated costs of production continue to weigh on profitability, while high levels of red tape and structural challenges impede optimal activity.”

Trade union federation Cosatu said the figures were worrying, particularly the decline in community and social services, which it linked to U.S. funding cuts earlier this year.

Parliamentary coordinator Matthew Parks also suggested job losses in agriculture and manufacturing could be tied to looming US tariffs. He noted, however, that discouraged work seekers had declined by 28,000, bringing the expanded unemployment rate to 42.9% from 43.1% in the previous quarter.

Trade union Uasa said that families wee being pushed further below the poverty line with another 80 000 jobs down the tubes in June. 

"With unemployment already one of the leading contributors to hardship, many South Africans are struggling to put food on the table and secure basic necessities," said Abigail Moyo, spokesperson for Uasa.

"The ongoing loss of jobs in critical industries is a clear indication that urgent structural reforms, investment in infrastructure, and better management of state resources are necessary to prevent the economy from collapsing. Without strict interventions, unemployment will likely continue to spiral out of control, exacerbating inequality and threatening social stability." 

Michael Bagraim, DA spokesperson on employment and labour, said that South Africa’s jobs crisis demands immediate reform and only real action can turn opportunity into work for millions.

“South Africa cannot afford to stumble along this path. That is why the DA has tabled a six-point plan to turbocharge growth and open the doors to work,” he said.

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