While South Africa might avoid dipping into another technical recession in the second quarter of 2024, it doesn’t change the fact that many consumers have already been feeling the pinch for a while. Salary growth in the country hasn’t kept up with inflation over the last few years, which means people are spending less and many households are getting poorer on a per capita basis.

Making things worse is the sky-high unemployment rate. Over a third of the working population is out of a job, and when you include those who have given up looking, that number creeps closer to half.

When you look at official data, the story of South Africa’s sluggish salary growth becomes even clearer. Over the past decade, the average non-agricultural formal salary in the country has climbed from R14,731 (in Q3, 2014) to R26,791 (in Q3, 2024). That’s an 81.9% increase. But inflation over the same period was about 62.3%, which means salaries have grown just 19.6% in real terms.

But, as is often the case, the average salary increase doesn’t paint the whole picture. Salaries vary widely across different sectors. For instance, in government and public services, pay hikes have often outpaced inflation, which isn’t the case everywhere.

Headline inflation doesn’t tell the full story either, especially when you look at specific sectors. Some industries have seen astronomical price increases, like the 131% jump in car prices and the steep hikes in electricity costs over the years.

Jobs That Have Seen the Most Growth

Digging into the data from Stats SA’s Quarterly Employment Survey (QES) for Q3 2014 and Q3 2024, it’s clear that not all job sectors are created equal when it comes to keeping up with inflation. Out of 88 job categories compared over the decade, 56 have seen salary increases greater than inflation. But that leaves 32 sectors where salary growth hasn’t kept pace, meaning workers in those fields have effectively experienced a pay cut in real terms.

At the bottom of the list are jobs in ship and boat repair and the manufacturing of coke oven products, petroleum refineries, and the processing of nuclear fuel. Salaries in these areas have only grown by about 20% since 2014. Interestingly, while ship and boat repair jobs have low average earnings—around R15,911, which is well below the national average—the latter jobs are among the highest earners.

The lower-growth jobs are generally found in the manufacturing sector, with some business services mixed in. But again, some of these sectors started with already high pay. For example, those working in financial intermediation have only seen a 40% salary increase over the past decade, but this sector remains the highest paid, with an average monthly salary of R90,650.

On the other hand, some of the biggest salary increases have come from much lower bases. Take those working in sawmilling and planing of wood—their average earnings have shot up by 142% from R4,597 in 2014 to R11,117 in 2024. Yet, despite this significant increase, it remains the second-lowest average earning in the Q3 2024 QES.

The largest jump in average earnings shouldn’t surprise anyone who’s been dealing with load shedding over the past decade. The manufacturing of motors, generators, and transformers has seen salaries soar by 151%.

It’s also worth noting that these figures represent average earnings over a quarter (three months), and many jobs have seasonal variations. However, this analysis compares the same quarters in 2014 and 2024 to keep things consistent.

Jobs with the Most Significant Salary Increases

In total, 17 job categories have seen their salaries more than double over the past decade. These include:

• Electronic motor, generator, and transformer manufacturing (+151%)
• Transport equipment manufacturing (+144%)
• Sawmilling and planing of wood (+142%)
• Health and social work (+141%)
• Recycling (+126%)
• NGO activities (+121%)
• Non-gold mining (+115%)
• Financial intermediation (+111%)
• Business activities (+108%)
• Other NGO services (+107%)
• Sea and coastal water transport (+106%)
• Motor vehicle manufacturing (+103%)
• Gold mining (+102%)
• Household appliance manufacturing (+102%)
• Optical instrument (cameras, watches, clocks) manufacturing (+102%)
• Production of meat, fish, fruit, vegetables, oils, and fats (+101%)
• Manufacturing of TV and radio receivers, sound or video recording (+100%)

Jobs with the Least Salary Growth

On the flip side, here are the 10 job categories that have seen the smallest average salary increase:

• Building and repairing of ships and boats (+20%)
• Coke oven, petroleum, and nuclear fuel processing (+20%)
• Electrical equipment manufacturing (+35%)
• Beverages and tobacco products manufacturing (+36%)
• Insulated wire and cable manufacturing (+37%)
• Electronic valves and other electric component manufacturing (+38%)
• Grain mill and related manufacturing (+38%)
• Activities auxiliary to financial intermediation (+40%)
• Electricity distribution and control apparatus manufacturing (+40%)
• Business research and development (+40%)

FAQs

1. Which job sectors have seen the most salary growth in South Africa over the last decade?
Jobs in electronic motor, generator, and transformer manufacturing have seen the highest salary growth, with earnings increasing by 151% over the last ten years. Other sectors with significant growth include transport equipment manufacturing and health and social work.

2. Are there job sectors in South Africa where salaries haven’t kept up with inflation?
Yes, there are several sectors where salary increases have lagged behind inflation. For example, jobs in ship and boat repair and coke oven, petroleum, and nuclear fuel processing have only seen around 20% salary growth since 2014, well below the inflation rate of 62.3% over the same period.

3. How do seasonal jobs affect the salary data presented?
The salary data reflects average earnings over a quarter, so seasonal variations in pay are taken into account. However, to ensure consistency, the data compares the same quarters in 2014 and 2024, which helps to mitigate any seasonal effects.

Overall, while some job sectors in South Africa have seen significant salary increases over the past decade, others have not fared as well. For workers in certain industries, salary growth has been robust, while others have barely kept pace with inflation, highlighting the disparities within the country’s labor market.