Key points
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Mining employment added 2,000 jobs despite national job losses.
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Structural problems still threaten mining employment sustainability.
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Wage growth in mining outpaces productivity, raising competitiveness concerns.
While South Africa’s overall job market shrank in the second quarter of 2025, the mining industry stood out by creating 2,000 new jobs. This growth highlights mining’s resilience in a tough economy where most sectors are cutting back.
Mining employment rose to 468,000 workers by June 30, compared with 466,000 at the end of March, according to the Minerals Council South Africa.
In contrast, non-agricultural employment across the country dropped by 80,000 jobs in the same quarter, bringing the total down to about 10.5 million.
Mining grows while other industries shrink
Although mining added jobs quarter-on-quarter, it still lost 6,000 jobs year-on-year, reflecting longer-term pressures. The broader job market also struggled, shedding 229,000 jobs between June 2024 and June 2025.
Community services was the hardest-hit sector, losing 225,000 jobs, followed by manufacturing (18,000), transport (3,000), and trade (1,000). On the other hand, the business sector grew by 23,000 jobs, while electricity added 1,000 positions.
The mining jobs increase came mainly from platinum group metals, gold, chrome, and coal mining.
Structural problems continue to weigh down growth
The Minerals Council said South Africa’s long-term ability to create and sustain jobs depends heavily on trade negotiations and addressing structural issues.
Unreliable electricity supply from Eskom and persistent inefficiencies at Transnet remain major obstacles.
“Reforms in the network industries are still basic and aimed at recouping lost efficiencies,” the council noted.
“For example, Eskom has not yet returned to its 2019 generation levels, and the same goes for Transnet.”
Without deeper reforms, the council warned, South Africa will continue to struggle to attract investment and create sustainable employment.
Higher wages, lower productivity raise concerns
The council also flagged a worrying trend in mining wages and productivity. Since late 2021, workers’ real earnings have grown faster than their productivity. In other words, employees are earning more than the value they produce.
This mismatch, while a win for heavily unionized workers, could hurt the industry’s competitiveness.
“It can lead to inflation, squeezed profit margins, and reduced global competitiveness,” the council warned.
Evidence of this problem is seen in mining profits, or gross operating surplus, which have been volatile and mostly negative since the Covid-19 pandemic.
Mining pay climbs but profits lag
In the second quarter of 2025, total earnings in the mining sector rose 2.2% to R49.8 billion, up from R48.7 billion in the first quarter. However, year-on-year growth of 2.9% was weaker than the rest of the economy.
Across the entire economy, salaries and wages grew 2.5% quarter-on-quarter to R902.8 billion, while gross earnings — which include overtime and bonuses — increased slightly to R986.8 billion.
While mining’s quarterly wage growth outpaced the national average, its annual growth lagged behind, underscoring the sector’s mixed performance.
