Stats SA's release of Quarterly Employment Statistics for March 2026 on Tuesday indicated that total employment decreased by 80 000, or -0.8%, quarter-on-quarter, from 10 548 000 in December 2025 to 10 468 000 in March 2026.
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South Africa's jobs crisis worsened in the first three months of this year after employment fell by 80 000 to 10 47 million who held jobs by the end of March 2026, and outlook is equally bleak.
Stats SA's Quarterly Employment Statistics for March 2026 released on Tuesday indicated that total employment decreased by -0.8%, quarter-on-quarter, which economists said was of great concern given the already high unemployment rate, but it not unexpected.
Stats SA reported that there were decreases in community services jobs (-53 000), trade (-40 000), transport (-3 000), and electricity (-1 000).
“There were increases reported by manufacturing (7 000), business services (7 000), mining (2 000), and construction (1 000). Total employment decreased by 121 000, or -1.1% year-on-year between March 2025 and March 2026.”
“Full-time employment decreased by 24 000, or -0.3%, quarter-on-quarter, from 9 43 million in December 2025 to 9 41 million in March 2026. This was due to decreases in the following industries: trade (-27 000), community services (-3 000), transport (-2 000), and construction (-1 000), manufacturing (-1 000), while electricity remained unchanged.
However, there were increases reported by business services (8 000, or 0.4%), and mining (2 000, or 0.4%).
Prof Simphiwe Madikizela, Professor of Economics at UNISA, College of Economics and Management Sciences, Department of Economics, said the decrease in total employment for the first quarter is a concern, but is not unexpected.
“It’s showing that South Africa’s economic recovery is not yet translating into broad-based employment creation. At the back of a 1.1% GDP growth for 2025, it’s an economy that is stabilising rather than growing, considering that we need at least 3.5% to 4% GDP growth to begin to dent the problem of unemployment, which is at 32.7%, and much higher at 43% if you use the broad definition of unemployment.”
Madikizela said any loss or decrease in employment reverses the small economic gains that the country has achieved.
“I must hasten to caution that most of the jobs lost are seasonal in nature, coming from the festive season where there would have been more hiring in retail, hospitality such as restaurants, hotels, and related industries, which will reduce the temporary staff after December. It’s 24 000 permanent jobs lost over the first quarter, and we would like to see jobs created and sustained rather than lost. One lost job is far too many as the employed person supports four to seven family members."
Madikizela said it’s a warning sign of an economy that is fragile and responds to shocks. “Clearly, there is an impact as well from the geopolitical challenges in the Middle East that began at the end of February 2026 and other rising operating costs for businesses that result in weak business confidence and weak economic growth, as shown by the 0.5% GDP in the first quarter and pressures on the economy.”
Matthew Parks, Congress of South African Trade Unions (COSATU) Parliamentary Coordinator, said that they "demand urgent and decisive action" to tackle the unemployment crisis.
“The latest jobs report released is beyond depressing. The construction as well as community and social services sectors have been particularly hard hit, notwithstanding some positive jobs increases in manufacturing, mining, and agriculture,” he said.
Parks said the outlook for the second quarter is likely to be similarly bleak due to the war in the Middle East and the big impact it has had on international oil and fuel prices, essentially doubling over the last two months.
“This has already seen economic growth projections for South Africa for 2026 slashed from an already meagre 1.4% to 1%. Inflation for transport has already jumped, with food and other essential goods likely to soon follow suit. This may see the Reserve Bank hike the repo rate, inflicting even further pain upon highly indebted workers and an embattled economy,” said Parks.
Abigail Moyo, spokesperson of the trade union UASA said that the lower employment reminds South Africans of the persistent economic challenge, as the economy continues to struggle to create enough sustainable jobs.
"The overall employment picture does not look promising, given that the rate at which we are losing jobs exceeds the rate at which jobs are being created. The employment crisis remains far from over. Sadly, every retrenchment puts a family's financial security at risk," said Moyo.
Dr Elna Moolman, Standard Bank Group Head of South Africa Macroeconomic Research, said that the data show a decline of 1% in jobs compared to the same period last year. “The job losses were in the public sector as well as the private sector. Overall, this adds to a bleak picture for South African consumers.”
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