South Africa lost six formal jobs for every one created in Q1 2026, new analysis finds

Real salaries at a two-year low, bonus payments cut by almost a third, and repeat withdrawals from retirement savings point to strain building inside the workforce well before retrenchment hits, according to a new review of official data.

DURBAN, 16 July 2026

South Africa's formal economy lost close to six jobs for every one it created in the first quarter of 2026, according to a new analysis of Statistics South Africa data by Launchworks, a platform that helps corporate professionals evaluate the move into business ownership.

Formal non-agricultural employment fell to 10.468 million in the quarter, down 121 000 on a year earlier, with four industries adding a combined 17 000 jobs against four others shedding 97 000.

The analysis shows the pressure builds well before anyone is retrenched.

The PayInc Net Salary Index put the average real, inflation-adjusted take-home salary at its lowest level in two years in May 2026, even as nominal pay edged up.

Bonus payments across the formal economy fell 29.5% in a single quarter, from R121 billion in December 2025 to R85.3 billion in March 2026, according to Stats SA's Quarterly Employment Statistics.

Retirement Savings Under Pressure

The starkest finding concerns retirement savings.

SARS processed more than 2.5 million two-pot withdrawal directives worth R47.7 billion in the system's first six months.

Data from the Actuarial Society of South Africa shows that three-quarters of the applications made in the opening months of the following tax year were repeat claims from people who had already withdrawn once.

"A single withdrawal looks like a household managing an emergency," says Adam McKeon, founder of Launchworks.

"Three out of four repeat claims a few months later is something else. People who are still employed are treating their retirement fund as a monthly top-up because their salary no longer stretches to the end of the month."

Corporate Tax Base

The analysis also points to growing concentration in the corporate tax base that supports formal employment.

SARS's Tax Statistics 2025 shows that just 630 large companies were liable for 59.6% of all assessed company income tax in the 2023 tax year, out of roughly 1.2 million companies assessed in total.

Entrepreneurship Trends

Despite the mounting pressure, South Africans are not responding by starting businesses.

The Global Entrepreneurship Monitor recorded a fall in the share of adults intending to start a business within three years from 20% in 2021 to 10% in 2023, the lowest level in 20 years.

Among South Africans who do start a business, seven in ten cite scarce jobs and the need to earn a living as a main motive, rather than a prepared opportunity.

"The uncomfortable part is that this pressure isn't pushing people toward building alternatives," McKeon says.

"Intention to start a business is at its lowest point in two decades, at exactly the moment having a plan B would matter most."

Key Findings

Taken together, the data points to a formal employment market that is shrinking, a salaried workforce that is quietly losing ground while still employed, and a corporate professional class that is not preparing for the alternative, even as the case for doing so strengthens.

About Launchworks

Launchworks (https://www.launchworks.co.za) is a South African platform that helps corporate professionals evaluate, prepare for and make the move into business ownership.

It provides structured tools and guidance across readiness assessment, business preparation and post-launch support, built on a principle of honest calibration rather than motivational cheerleading.

Notes to Editors

Figures cited in this release are drawn from the following public sources, listed for verification:

Statistics South Africa, Quarterly Employment Statistics, Q1:2026 (released 30 June 2026)

Statistics South Africa, Quarterly Labour Force Survey, Q1:2026 (released 12 May 2026)

PayInc, Net Salary Index, May 2026 report

SARS and the Actuarial Society of South Africa, two-pot withdrawal directive data, 2025/26 tax year

SARS and National Treasury, Tax Statistics 2025 (18th annual edition)

Global Entrepreneurship Monitor, South Africa national reports and country profile, 2019 to 2023 vintages

Media Contact

Adam McKeon

Founder, Launchworks

[email address]

[phone number]

https://www.launchworks.co.za

ENDS