Jobs decrease in 2023 final quarter by 1.8%
STATISTICS South Africa (Stats SA) said yesterday that formal employment in the country for the fourth quarter of 2023 decreased by 194 000 jobs, or 1.8%, quarter on quarter.
This brought the level of employment to 10.7 million, Stats SA’s quarterly employment statistics (QES) survey showed.
Lara Hodes, an economist at Investec, said declines were logged in five of the eight industries included in the survey, evincing the fragile state of the economy.
SA’s numerous challenges including electricity supply and logistical constraints – particularly elevated in quarter four 2023 – impeded optimal growth, she said.
The community services industry saw the highest number of job losses, totalling 214 000, followed by the construction industry, which lost 19 000 jobs, and the business services industry, which experienced a loss of 12 000 jobs.
The mining sector reported a moderate decrease, with 1 000 job losses.
However, the QES further showed that 98 000 jobs were added between December 2022 and December 2023.
Stats SA said certain industries experienced growth in employment. “The trade industry saw an uptick of 56 000 jobs, trailed by the transport industry with 2 000 jobs, and the electricity industry with 1 000 jobs.
“Full-time employment decreased by 5 000 jobs, dropping from 9 498 000 in the third quarter of 2023 to 9 493 000 in the fourth quarter of 2023,” Stats SA said.
Many industries witnessed declines in full-time employment.
The construction sector observed a reduction of 13 000 jobs, followed by the manufacturing industry with a loss of 12 000 jobs, and the community services industry with a decrease of 11 000 jobs.
Conversely, the trade industry reported an increase of 31 000 jobs.
Moderate increases were noted in the transport and electricity industries, with 3 000 jobs and 1 000 jobs, respectively.
Year-on-year, the number of full-time jobs rose by 12 000 in December 2023 compared with December 2022.
Meanwhile, part-time employment decreased by 189 000, reaching a total of 1 212 000 in December 2023 compared with 1 401 000 in September 2023.
Year-on-year part-time employment saw a rise of 86 000 jobs compared with the corresponding quarter of 2023.
Trade union Uasa said it was deeply distressed by the decrease in employment. “The recent increase in inflation, ongoing job cuts and retrenchments mainly in the mining sector, will further result in dire financial depression and economic distress for South Africa and its people,” it said.
Uasa urged the government to intervene by providing relief funds to sustain threatened industries, including small business owners, and assist with sustainable job creation.
“We must absorb a significant portion of the unemployed pool. Fellow South Africans are suffering,” Uasa said.
Total gross earnings paid to employees increased by 5.8%, totalling R995.6 billion in December 2023 compared with R941.3bn in September 2023.