Unemployment rate drops slightly
SOUTH Africa’s unemployment rate dipped slightly to 27.1% of the labour force in the fourth quarter of 2018 from 27.5% during the previous three months, the national Statistics Department said yesterday.
The unemployment rate, however, remains generally high, reflecting sluggish economic growth hampering efforts to create jobs.
The National Treasury has forecast GDP expansion of 1.7% in 2019 from an estimated 0.7% last year.
In its Quarterly Labour Force Survey, Statistics SA said the number of employed people increased by 149 000 to 16.5 million in Q4. 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 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 declined by 15 000 jobs, however.
“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,” Stats SA said.
It also reported 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, manufacturing at 48 000, mining with 31 000 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.