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Construction Labour Force 2008 - 2026Q2

Informal sector drives construction labour force expansion

Construction employment strengthened in the second quarter of 2026, increasing by 7.5% year-on-year to 1.35 million workers, the strongest employment growth recorded across the major economic sectors. However, the headline figure masks a clear divide within the industry. Informal construction employment increased by 21% y/y, while formal employment declined by 1.8%, suggesting that smaller and informal construction activity is currently driving employment growth.

Provincially, Gauteng and Limpopo were the main contributors to the increase, with employment rising by 14.9% and 16.7% respectively. The Free State also recorded a sharp increase, although from a relatively small base. In contrast, employment declined in the North West and Eastern Cape. Overall, the figures point to improving construction employment, but not yet a broad-based recovery in the formal construction market.

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