Online Reporter
Nqobile Bhebhe, Senior Business Reporter
MATABELELAND is emerging as one of Zimbabwe’s strongest wage-growth zones, but the sharp rise in employee earnings is yet to translate into a significant expansion of the region’s formal employment base, latest official data shows.
The Zimbabwe National Statistics Agency (ZimStat)’s Employment Index Report for the first quarter of 2026 shows Matabeleland North recording the country’s highest provincial earnings index at 245.7, followed by Bulawayo at 231.2 and Matabeleland South at 230.1.
The three Matabeleland jurisdictions recorded earnings substantially above the third-quarter 2024 base period of 100, placing the region at the centre of Zimbabwe’s changing labour-market dynamics.
However, employment volumes remained comparatively subdued showing the challenge of converting the region’s investment potential into broader job creation.
Matabeleland North recorded an employment volume index of 95.3, below the base-period level of 100, while Matabeleland South stood at 103.2 and Bulawayo at 100.1.
Nationally, the provincial employment volume index stood at 100.3 during the quarter, representing a 1.2 percent year-on-year decline from 101.5 recorded in the first quarter of 2025.
For Matabeleland North, the employment numbers point to a particularly important challenge.
The province had about 24 600 employees covered by the index in the first quarter, down from 25 300 in the fourth quarter of 2025.
Matabeleland South, however, recorded an increase to about 18 000 employees, from 17 200 in the preceding quarter, while Bulawayo the region’s industrial and commercial hub recovered to about 144 000 employees, from 138 000.
The employment picture contrasts sharply with movements in nominal earnings.
Average quarterly earnings in Matabeleland North increased to about ZWG25 800, from ZWG15 300 in the fourth quarter of 2025.
Matabeleland South rose to ZWG25 200, from ZWG16 200, while Bulawayo recorded average quarterly earnings of about ZWG30 700, up from ZWG20 500.
The regional performance also had a notable bearing on the overall provincial earnings index, with Matabeleland North contributing 5.2 percentage points, Matabeleland South 4.6 percentage points and Bulawayo 9.5 percentage points.
Combined, the three jurisdictions accounted for 19.3 percentage points of the overall provincial index movement.
Economist Ms Alice Chikonzi said, “For Bulawayo, the figures carry particular significance as the city seeks to rebuild its industrial base and attract fresh capital into manufacturing, energy, logistics and related productive sectors.
“Its employment volume index of 100.1 indicates that employment remained broadly around the base-period level despite the substantial movement in earnings.”
At industry level, mining and quarrying, a major economic activity in Matabeleland, recorded an employment volume index of 100.5, indicating broadly stable employment against the base period.
The sector recorded an earnings index of 131.4, while construction posted an employment index of 101.9 and an earnings index of 124.1.
The figures point to a labour market where earnings among existing formal-sector employees have increased significantly, while the expansion of the employment base has remained comparatively limited.
“For a region seeking to leverage its mineral resources, industrial infrastructure, tourism assets, border facilities and energy potential, the distinction between wage growth and employment creation is significant.
“The data suggests that the next phase of regional economic development will need to focus not only on improving returns for existing employees, but also on expanding productive capacity and bringing more workers into formal employment,” said Ms Chikonzi.
The Employment Index, however, primarily captures formal-sector economic activity and establishments, meaning developments in the informal economy are not fully reflected.
Agriculture, forestry and fishing are also excluded because of limitations in obtaining consistent quarterly establishment data.
At national level, the provincial earnings index reached 166.0 in the first quarter, up 15 percent quarter-on-quarter but down 2.8 percent year-on-year.
ZimStat said the broader labour market remained relatively stable during the review period.
“The analysis of the Employment Index for the period spanning the third quarter of 2024 to the first quarter of 2026 demonstrates that labour market conditions remained broadly stable across both industry and provincial domains.
“Employment Volume Indices fluctuated marginally around the base period benchmark, reflecting resilience in job retention and limited volatility in labour absorption,” said ZimStat.
“The slight movements observed in the first quarter of 2026 are indicative of normal cyclical adjustments rather than structural shifts, underscoring the overall stability of employment levels during the review period.
“Nominal earnings exhibited a sustained upward trajectory across most industries and provinces, signifying improvements in wage levels relative to the base period.”
The agency also reported on real earnings, stating: “When deflated by the Consumer Price Index, the Real Earnings Indices confirmed that purchasing power strengthened in the first quarter of 2026, as earnings growth outpaced inflationary pressures.
“This outcome points to a positive development in real income dynamics, suggesting enhanced welfare for employees and improved labour market competitiveness.”
Added the report: “In statistical terms, the labour market during the review period can be characterized as stable in employment absorption, progressive in nominal wage growth, and favourable in real earnings performance.”
The latest figures reinforce the importance of translating investment activity into wider productive capacity.
The region has established mining operations, Bulawayo’s industrial base, tourism assets, border and logistics infrastructure and opportunities in energy and agro-processing sectors with potential to expand the formal employment base as new investment comes on stream.
