SOUTH AFRICA’S FORMAL EMPLOYMENT DECLINES IN FIRST QUARTER OF 2025
Statistics South Africa (Stats SA) has reported a continued decline in formal sector employment, with job numbers dropping by 0.7% in the first quarter of 2025. Compared to the same period last year, employment fell by 0.9%, signaling persistent challenges in the labor market.
The latest Quarterly Employment Survey (QES) reveals that formal sector jobs decreased from 10.6 million in the fourth quarter of 2024 to 10.5 million in the first three months of this year. The trade sector was the hardest hit, shedding 2.2% of its workforce. Other sectors that saw job losses included community services, mining, business services, construction, and electricity.
Mixed Performance Across Industries
While most sectors struggled, the transport industry remained stable, and manufacturing showed a slight recovery, adding 2,000 jobs quarter-on-quarter. However, full-time employment suffered a significant decline, with 55,000 positions lost in Q1 2025. Year-on-year, full-time employment decreased by 40,000 jobs. Part-time employment also saw declines both quarterly and annually.
Earnings Show Modest Annual Growth but Quarterly Decline
Despite the job losses, gross earnings increased by 2.7% compared to the first quarter of 2024. However, earnings fell quarter-on-quarter, with basic salaries, bonuses, and overtime payments all recording declines.
The latest figures highlight ongoing economic pressures, particularly in trade and labor-intensive sectors. Economists warn that without targeted interventions, South Africa’s job market may continue to face strain in the coming months.
