South Africa’s mining sector recorded a modest increase in employment in the third quarter, adding 2 000 jobs year-on-year to bring total employment to 474 000, industry body the Minerals Council South Africa points out.
The sector also added 5 000 jobs quarter-on-quarter, suggesting a modest but noteworthy rebound.
According to the council, the gains reflect higher commodity demand and a degree of stabilisation in production levels.
However, the council cautions that post-Coivd-19 data shows that real mining wages have consistently exceeded the value of output produced, creating pressures for the sector.
It notes that this imbalance carries several consequences, including rising unit labour which pushes up the price of production, loss of global competitiveness, pressure on profitability and long-term sustainability risks.
The council warns of structural fragility, noting that a sector unable to sustain wage increases without corresponding productivity improvements risks stagnation.
Mining sector wages rose from R79 957 in the third quarter of 2019 to R108 759 in the comparative quarter this year, a 36% increase – outpacing headline consumer price index growth of 32% and slightly above the overall economy’s 33% rise.
As a result, mining ranks among the faster-growing sectors in terms of remuneration, alongside finance and construction, the council indicates.
“The above-inflation wage growth suggests real gains for mining employees, but it also highlights potential cost pressures for the sector, especially given its exposure to globally competitive markets where higher labour costs can erode profitability,” the council posits.
Looking ahead, the council avers that the mining sector’s modest but consistent job gains point to a potential stabilising role in South Africa’s fragile labour market.
“Sustained demand for commodities such as chrome and gold and the platinum group metals could continue to support incremental employment growth, even as other labour-intensive industries face structural headwinds.
“However, the broader picture remains uneven. Fiscal constraints, weak domestic demand, and global supply chain pressures are likely to weigh on sectors such as community services, manufacturing, and construction. This suggests that while mining may provide short-term resilience, long-term labour market recovery will depend on addressing structural weaknesses and fostering investment across a wider range of industries,” the council concludes. Edited by Mariaan Webb
