South Africa’s formal sector sheds 80,000 jobs in Q1 2026, wages and bonuses fall sharply

South Africa’s formal non‑agricultural economy lost 80,000 jobs in the first quarter of 2026, Statistics South Africa’s Quarterly Employment Statistics (QES) survey shows, as employers cut staff, bonuses, overtime and wage costs amid rising pressure on households.

Headline numbers

The QES found that 80,000 jobs disappeared in the first three months of 2026, and that employment was down 121,000 year‑on‑year. Total formal non‑agricultural employment declined from 10.548 million in December 2025 to 10.468 million by the end of March 2026. Compared with March 2025, employment fell from 10.589 million.

Earnings and pay components

Gross earnings paid to employees fell by R43.4 billion (about 4%) during the quarter to R1.04 trillion. Within that total, basic salaries and wages declined by R6.9 billion, bonus payments dropped by R35.8 billion almost 30% between December and March, and overtime payments fell by R700 million.

Who lost work

Losses were concentrated in sectors that employ large numbers of people. The QES reported that:

• Community services shed 53,000 jobs in the quarter.
• Trade (including wholesale, retail, hotels and restaurants) lost 40,000 jobs.
• Transport and electricity also recorded declines.

Some sectors recorded small gains: manufacturing and business services each added 7,000 jobs, mining gained 2,000 and construction added 1,000, but these were insufficient to offset broader losses.

Part‑time workers hardest hit

The QES showed that part‑time employment fell by 56,000 during the quarter more than double the decline in full‑time employment, which fell by 24,000. Community services accounted for 50,000 of the part‑time job losses, while trade lost a further 13,000 part‑time positions.

Survey scope and wider impact

The payroll survey covers approximately 20,000 VAT‑registered businesses and public institutions. Analysts said the figures point to mounting financial strain on households: the QES decline coincided with data showing increases in non‑performing loans and a broader rise in overdue consumer debt.

“A reasonably bleak picture” for South African consumers,

Dr Elna Moolman, Standard Bank Group head of South Africa macroeconomic research, commented on the consumer outlook and the QES results. She said,

“In the first quarter of this year the credit bureau data that we track shows an increase in financial pressure on consumers and specifically a broad‑based rise in non‑performing loans and the proportion of consumers with overdue debt.”

On the employment change she added:

“This survey shows more than a one percent decline in jobs in the first quarter of this year relative to the first quarter of last year.”

What employers cut

The QES findings indicate employers reduced not only headcount but also pay costs through lower bonuses, overtime and base wages during the quarter, contributing to the drop in gross earnings paid.