South Africa’s working class – households earning between R8 000 and R22 000 per month – has expanded significantly despite the country’s ongoing economic struggles.
This is according to The Majority Report 2025, published by the University of Cape Town’s (UCT) Liberty Institute, which finds that the country’s working class grew by 6-million people between 2012 and 2022, while working-class households increased by 1,3-million over the same period.
The institute’s analysis of General Household Survey data also found that the working class’s spending power nearly doubled, surging from R280-billion a year to R550-billion in 2022. This group now accounts for nearly a quarter of all consumer spending.
Associate Professor James Lappeman, head of projects at the institute, emphasises the economic significance of this group: “Growth in the working class is being driven by several factors, including wage inflation and population growth. However, despite their increasing size and spending power, this segment is often ignored by businesses whose focus is concentrated on the middle and upper classes.
“They make up nearly a quarter of the population, and because of their sheer numbers, they are the dominant buying group in a number of categories,” he adds. “Yet, they are still not given the attention they deserve.”
Paul Egan, head of the institute, highlights the long-term significance of the working class, noting that many within this group were on a trajectory towards middle-class status.
“Many of today’s working-class South Africans will be tomorrow’s middle class. While financial pressures are real, this group is highly aspirational, optimistic and resourceful.
“We see individuals and households investing in education, skill development and entrepreneurial ventures to climb the economic ladder. Even though they are less resourced, there is a clear demand for brands that deliver both value and aspiration, making this a key market for businesses looking to build long-term consumer loyalty.”