South Africa’s economic recovery has hit a stumbling block, with the economy contracting in the second quarter of 2026 as several key industries also shed jobs.
According to the latest gross domestic product (GDP) figures from Statistics South Africa (Stats SA), the economy contracted by 0.2% between April and June, ending six consecutive quarters of growth as mining, trade, and manufacturing weighed on economic activity.
“Mining, trade, and manufacturing drove down economic activity,” Stats SA said.
The contraction comes as the country’s labour market continues to face pressure, with the latest Quarterly Labour Force Survey (QLFS) showing that employment fell by 16 000 to 16.74 million in the second quarter.
At the same time, the number of unemployed people increased by 345 000 to 8.5 million, pushing the official unemployment rate from 32.7% to 33.6%.
