Stats SA: 1% drop in unemployment
UNEMPLOYMENT in South Africa fell 1 percent in the fourth quarter to 26.7 percent from 27.7 percent in the third quarter.
The Quarterly Labour Force Survey (QLFS) released by Statistics South Africa (Stats SA) yesterday warned, however, that the number of discouraged work seekers increased by 103 000 quarter-on-quarter to 2.53 million in the fourth quarter, the highest level recorded since the QLFS was first conducted in January 2008.
Stats SA said the survey showed that jobs were created mainly in community services, manufacturing and agriculture sectors.
It said the formal sectors of finance and other business services, trade and mining sectors shed the highest number of jobs.
Gerrit van Rooyen, an analyst at NKC Africa Economics, said the job losses in the trade sector were disappointing in light of the bumper retail sales recorded in November
South Africa’s unemployment has remained stubbornly at 27.7 percent since the first quarter of 2017.
The slight decline in the fourth quarter was, however, still way below the National Development target of 14 percent by 2020. Stats SA said the unemployment rate dropped in all provinces except the Free State and Limpopo.
Macroeconomics statistics website Trading Economics said the unemployment rate in South Africa averaged 25.52 percent from 2000 until 2017, reaching an all-time high of 31.20 percent in the first quarter of 2003 and a record low of 21.50 percent in the fourth quarter of 2008.
Jason Muscat, a senior economic analyst at FNB, said despite the upbeat headline unemployment number, the figures show that the number of jobs actually declined by nearly 21 000 in the quarter.
“The private sector actually slashed 135 000 jobs in the fourth quarter,” said Muscat.