According to the latest Quarterly Employment Statistics from Statistics South Africa, average monthly earnings increased by 4.1% year-on-year between May 2025 and May 2026, reaching R30 611. This growth includes bonuses and overtime payments. The earnings increase is notable as it occurs against a backdrop of declining employment numbers. The data also shows a 2.6% quarter-on-quarter increase in average monthly earnings, rising from R29 825 in February 2026 to R30 611 in May 2026.
Despite the increase in earnings, total employment in South Africa decreased by 14 000 jobs, or 0.1%, quarter-on-quarter, from 10.439 million in March 2026 to 10.425 million in June 2026. The decline in employment was observed in various sectors, with the biggest quarterly declines recorded in manufacturing, which lost 20 000 jobs, business services, which lost 13 000 jobs, trade, which lost 8 000 jobs, and transport, which lost 5 000 jobs.
The declines in employment were partly offset by increases in community services, which gained 29 000 jobs, electricity, which gained 1 000 jobs, mining, which gained 1 000 jobs, and construction, which also gained 1 000 jobs. Year-on-year, total employment fell by 95 000 jobs, or 0.9%, between June 2025 and June 2026. Full-time employment fell by 40 000 jobs, or 0.4%, during the quarter, while part-time employment increased by 26 000 jobs, or 2.4%.
The year-on-year changes in employment numbers also show a decline in full-time employment by 96 000 jobs, or 1%, while part-time employment increased by 1 000 jobs, or 0.1%. In terms of earnings, gross earnings paid to employees increased by R35.1 billion, or 3.5%, year-on-year between June 2025 and June 2026. However, gross earnings fell by R4.8 billion, or 0.5%, quarter-on-quarter to about R1.025 trillion.
Breaking down the earnings, basic salaries and wages increased by R15.5 billion, or 1.7%, quarter-on-quarter to R930.1 billion. Year-on-year, basic salaries and wages increased by R26.7 billion, or 3%. Bonus payments, however, fell sharply by R23 billion, or 26.9%, quarter-on-quarter, from R85.8 billion to R62.8 billion. Despite the quarterly decline, bonus payments were R6.1 billion, or 10.8%, higher year-on-year.
Overtime payments increased by R2.7 billion, or 9.3%, quarter-on-quarter to R32.1 billion. Year-on-year, overtime payments increased by R2.3 billion, or 7.6%. The latest Quarterly Employment Statistics figures show that average monthly earnings continued to grow, even as the number of employees declined over the year. This data is based on Statistics South Africa's QES, which measures employment and earnings in the formal non-agricultural sector.
The mixed trends in employment and earnings highlight the complexities of the South African labor market. While there are positive signs in terms of earnings growth, the decline in employment numbers, particularly in full-time jobs, poses challenges. The data suggests that the labor market is experiencing shifts, with implications for policymakers and stakeholders. KEY_POINT: Employment in South Africa decreased by 14 000 jobs quarter-on-quarter. KEY_POINT: Average monthly earnings increased by 4.1% year-on-year. KEY_POINT: Full-time employment fell by 96 000 jobs year-on-year.
