South Africa Sheds 80,000 Jobs in Second Quarter as Economic Strain Deepens

South Africa's economy continues to bleed jobs, with the latest statistics revealing a loss of 80,000 formal sector positions in the second quarter of 2025. This 0.8% quarter-on-quarter decline signals deepening economic strain, bringing the total jobs lost in the first half of the year to a dire 144,000. Independent economist Elize Kruger has labeled the figures "disappointing" and a clear indicator of "hard times" for an economy already grappling with a 33% unemployment rate.

A Broad-Based Decline: Key Sectors in the Red

The job losses were not isolated to a single industry but reflected broad economic headwinds. The Quarterly Employment Statistics (QES) survey highlighted significant decreases across several major sectors:

• Community & Social Services: This broad sector, including government, health, and education, was a major contributor to the losses.
• Trade, Manufacturing, and Construction: These core industries continue to face severe pressure, with manufacturing failing to recover to pre-COVID production levels.
• Transport and Business Services: The transport sector, particularly road freight, has been under sustained pressure, now reflected in its employment numbers.

The only pockets of positivity were found in the mining and electricity sectors, which managed to eke out modest gains, though insufficient to offset the widespread declines.

READ: Coca-Cola Bottling Plant Announces Major Restructuring, Potentially Cutting 600 Jobs in South Africa. |

A Deepening Year-on-Year Crisis

The situation appears even more stark when compared to the previous year. Total employment in June 2025 was 229,000 lower (a 2.1% decrease) than in June 2024. This year-on-year comparison underscores a persistent negative trend in the South African labor market, affecting both full-time and part-time employment.

A paradoxical note in the data showed an increase in gross earnings, which Kruger likely attributes to wage increases for those who remained employed. However, this was coupled with a decrease in bonuses and overtime pay, suggesting businesses are cutting back on discretionary spending and extra hours.

Economist Reaction: "A Dire Scenario"

Reacting to the statistics, independent economist Elize Kruger did not mince words. "Really disappointing employment stats today for quarter 2," she stated, emphasizing that the problem has been building, following the 64,000 jobs lost in the first quarter.

"For the first half of 2025, we are now talking about 144,000 less jobs in the economy, and that's really a dire scenario, especially with our unemployment rate already at 33%," Kruger explained. "That really signals hard times for the South African economy."

Sector-Specific Struggles: Manufacturing and Transport Lag

Kruger provided deeper insight into the struggles of key sectors:

• On Manufacturing: "Manufacturing has been a laggard in the South African economy actually ever since COVID... we haven't seen a recovery in production levels to pre-COVID levels as we speak." She noted that the job losses are a direct reflection of the sector's prolonged contraction.
• On Transport: Kruger linked the job losses in transport to a "notable drop in our road freight sector," potentially affecting truck drivers and related logistics jobs. She clarified that while government initiatives like Operation Vulindlela are positive, they are long-term solutions. "It takes a good two to three years before you do see the real impact on ground level. So at this point in time... we are not seeing that yet in economic growth numbers or for that matter in employment statistics."

The Root Cause: An Economy Struggling to Grow

The fundamental issue, as highlighted by Kruger, is the country's anemic economic growth, which registered at less than 1% in the first half of the year. Sectors experiencing negative growth are now inevitably shedding jobs. This creates a feedback loop where low growth leads to job losses, which in turn suppresses consumer demand and further constrains economic expansion.

READ: Mining and Manufacturing Boost South Africa’s GDP to 0.8% in Q2 | Inflation 2025 |

Conclusion: A Call for Accelerated Reforms

The Q2 2025 employment data paints a clear picture of an economy under severe duress. The broad-based nature of the job losses indicates that the challenges are systemic, rooted in sluggish growth and structural inefficiencies.

While policy reforms in network industries like rail and energy are crucial building blocks for future recovery, as Kruger points out, their benefits have yet to materialize in the lived reality of the labor market. For the 144,000 South Africans who have lost their jobs this year, the wait for an economic turnaround is a daily struggle, underscoring the urgent need for accelerated implementation of growth-oriented policies.