Job losses spike in metro

FIELDING the biggest increase among all metros in South Africa, unemployment in Nelson Mandela Bay rocketed by 4.3% in the second quarter to reach a high of 34.4%.

This is according to the latest Quarterly Labour Force Survey, which was released by Statistics South Africa yesterday.

It also showed that the Eastern Cape, in comparison with the other provinces, had fielded the highest increase in the unemployment rate, which on an annual basis, increased by 5.8%.

Stats SA said the province had shed 26 000 jobs between January and June, with 13 000 of these jobs having been lost in Nelson Mandela Bay. Buffalo City lost 5 000, jobs with the remainder being lost in non-metro areas.

The expanded unemployment rate – which includes those who wanted to work but did not look for it – increased from 30.4% in the first quarter to 35.4% in the second quarter in Nelson Mandela Bay

Unemployment in the second quarter of this year, which nationally is the highest figure since September 2003, has remained steady at 27.7% from the previous quarter, but declined by 1.1% year-on-year.

In summarising the second quarter survey results, Stats SA said both employment and unemployment had decreased in quarter two, resulting in the unemployment rate remaining unchanged from the first quarter of this year.

Employment declined in three of the four sectors, which included the formal sector where employment decreased by 144 000, agriculture, which saw a decrease of 40 000 jobs, while private households shed 8 000 jobs. Employment gains of 80 000 were recorded in the informal sector.

Weighing in on the new figures, Nelson Mandela Business Chamber spokeswoman Cindy Preller said: “The chamber is concerned by the high unemployment rate in the region and the province.

“Our workforce is particularly exposed to changes in the national and global economy.

“Unfortunately, we also had several companies reduce their workforce this year.

“Sectors that showed the biggest decline [construction and agriculture] can also be attributed to short-term projects, seasonal work and drought conditions.”