MIGHTY SCARLET Positive signs in labour statistics
NUMBERS: UNEMPLOYMENT RATE REMAINS HIGH
Mining sector records net gain of 31 000 jobs on quarter-on-quarter basis.
South Africa’s unemployment rate dipped slightly to 27.1% of the labour force in the fourth quarter (Q4) of 2018 from 27.5% during the previous three months, Statistics SA said yesterday.
However, the unemployment rate remained generally high, reflecting how sluggish economic growth – the National Treasury has forecast gross domestic product (GDP) expansion of 1.7% this year from an estimated 0.7% last year – is hampering efforts to create jobs.
In its Quarterly Labour Force Survey, StatsSA said the number of employed people increased by 149 000 to 16.5 million in Q4, while the number of those unemployed declined by 70 000 to 6.1 million compared to the third quarter, resulting in an increase of 79 000 in the number of people in the labour force.
Employment increased in three of the four sectors covered in the survey, with the formal sector recording the largest employment gains of 92 000, followed by private households at 65 000 and agriculture with 7 000. Informal sector employment, however, declined by 15 000 jobs.
“There was a net increase of 70 000 in the not economically active population, resulting in the number of discouraged work seekers increasing by 108 000,” it said, reporting a decline of 38 000 in the number of people who were not economically active due to reasons other than discouragement.
The number of people with jobs increased in six of the 10 industries under consideration. The largest additions were recorded in finance and other business services, with 109 000, private households with 65 000, and trade with 14 000.
Employment declines were, however, recorded in community and social services with 51 000, while transport registered a 30 000 reduction, utilities were down 22 000 and construction fell 21 000.
Speaking after the release of the figures Marique Kruger, Steel and Engineering Industries Federation of Southern Africa economist, said the broader manufacturing sector – including its metals and engineering cluster of industries – recorded employment gains of 48 000 jobs during Q4 of 2018, representing a 2.8% quarter-on-quarter increment.
However, he noted the sector had disconcertingly lost 24 000 jobs in the year, a 1.4% year-on-year change, despite an encouraging increase in output.
The changes in employment numbers were varied in other industrial sectors. The mining sector recorded a net gain of 31 000 jobs on a quarter-on-quarter basis, adding to the net increase of 27 000 jobs year on year, while the construction sector shed 21 000 jobs on a quarter-on-quarter basis.
“The unemployment dilemma continues to be one which is difficult for policymakers and captains of industry to deal with,” Kruger said. “This is despite increased political will, as highlighted in both the jobs summit held late last year and in last week’s State of the Nation address.” –