SA Adds 18,000 Jobs in Q4 2025 as Trade and Services Drive Modest Employment Recovery

Growth in both categories was again concentrated in trade and business services, highlighting a structural shift toward service-led employment.

 South Africa’s labour market showed tentative signs of recovery in the final quarter of 2025, with total employment rising by 18,000 jobs to 10.55 million, according to the latest Quarterly Employment Statistics (QES) released by Statistics South Africa (Stats SA).

While the 0.2% quarterly increase signals resilience in key sectors, the broader picture remains fragile, with employment still down 102,000 jobs year-on-year, underscoring persistent structural challenges in the economy.

Services Sector Leads Job Gains

The modest quarterly growth was largely driven by the trade and business services sectors, which continue to anchor employment in South Africa’s evolving economy:

• Trade sector: +37,000 jobs

• Business services: +17,000 jobs

These gains reflect sustained consumer activity and growing demand for professional and support services, even amid economic headwinds.

However, the recovery was uneven. Several traditional and industrial sectors continued to shed jobs:

• Construction: -13,000 jobs

• Manufacturing: -11,000 jobs

• Community services: -5,000 jobs

• Transport: -4,000 jobs

• Mining: -3,000 jobs

Employment in the electricity sector remained unchanged, pointing to stagnation in a critical infrastructure industry.

Full-Time Jobs Edge Higher, Part-Time Work Expands

Breaking down the employment data:

• Full-time employment rose by 14,000 (0.1%) to 9.43 million

• Part-time employment increased by 4,000 (0.4%) to 1.12 million

Growth in both categories was again concentrated in trade and business services, highlighting a structural shift toward service-led employment.

However, declines in construction, manufacturing, and mining continue to reflect ongoing industrial pressures, including weak investment, infrastructure constraints, and global demand fluctuations.

Earnings Surge Signals Strong Corporate Activity

In a notable development, gross earnings surged by R74.7 billion (7.4%) over the quarter, reaching R1.08 trillion in December 2025.

This sharp increase was broad-based, spanning all major industries, and suggests:

• Improved business performance

• Seasonal payouts

• Stronger compensation cycles

On a year-on-year basis, gross earnings rose by R49.6 billion (4.8%), indicating steady income growth despite employment challenges.

Bonuses Drive Income Growth

A key driver of the earnings increase was a dramatic rise in bonus payments, which jumped by:

• R58.1 billion (92.5%) quarter-on-quarter

• Reaching R120.9 billion in total payouts

This surge reflects year-end incentives and improved profitability across sectors such as business services, trade, manufacturing, and construction.

Compared to the previous year, bonuses increased by R8.6 billion (7.6%), reinforcing the trend of stronger corporate remuneration.

Wages and Overtime Show Modest Gains

• Basic salaries and wages increased by R16.6 billion (1.8%) to R930.8 billion

• Annual wage growth stood at 4.5%, indicating moderate income expansion

Meanwhile, overtime payments saw only marginal growth:

• Up R41 million (0.1%) to R28.4 billion

This suggests limited increases in production intensity, particularly in sectors facing operational constraints.

Average Earnings Reflect Stable Income Growth

Average monthly earnings rose slightly by 0.1% to R29,690, while annual growth reached 4.9%, pointing to stable—though not accelerating—income trends.

Mixed Signals for South Africa’s Labour Market

The latest data paints a mixed picture of South Africa’s economy:

Positive indicators:

• Job gains in services sectors

• Strong growth in earnings and bonuses

• Stable wage increases

Ongoing challenges:

• Annual decline in total employment

• Continued job losses in industrial sectors

• Limited growth in infrastructure-linked industries

Structural Shift Underway

Economists note that the data reflects a structural transition in South Africa’s labour market, with employment increasingly concentrated in services rather than traditional sectors like manufacturing and mining.

This shift raises important policy questions around:

• Industrial revitalisation

• Skills development

• Inclusive job creation

Outlook: Recovery Remains Uneven

While the fourth quarter’s job gains offer a degree of optimism, the year-on-year decline highlights the fragility of the recovery.

Sustained employment growth will likely depend on:

• Increased investment

• Infrastructure improvements

• Policy certainty

• Support for labour-intensive sectors

As South Africa navigates a complex economic landscape, the latest employment data underscores both progress and persistent challenges in building a more inclusive and resilient labour market.