SA JOBS CRISIS WORSENS (LEAD)

THE second-quarter employment survey has validated fears expressed by trade unions and analysts in the first quarter that the unemployment crisis in the country would worsen.

Formal non-agriculture jobs fell by 48,000 in the first quarter, courtesy of a dour performance in manufacturing, transport, trade and finance and business services.

Stats SA said that while Thursday’s figures showed a gain of 13,000 joabs when compared with a similar period in 2016, the figures were unlikely to allay fears that the weakened economy was shedding jobs at a fast rate.

Mining and trade were recorded as having increased by 6,000 jobs. This is despite the thousands of retrenchment notices issued by mining houses in recent months.Their affect will be felt in the third quarter, when new data are released.

Second-quarter job losses were driven by the manufacturing industry with 13,000 jobs lost and the construction industry with 11,000 jobs.

The Quarterly Labour Force Survey in August showed the unemployment rate increased to 27.7%, with the construction, agriculture and mining sectors the worst hit.

At the time, Cosatu and the South African Federation of Trade Unions warned that unless the government rose to the challenge, employment prospects would remain bleak.

The quarterly employment survey excludes agriculture and personal households in its sample of 20,000 businesses.

Economist Thabi Leoka said the new figures pointed to an ailing economy and it was unlikely that it would improve.

“There is a slowdown in investment and a general subdued growth in the economy. Companies tend to employ when they are performing well and the economy is doing well,” Leoka said. The survey also revealed that total earnings paid to employees declined by R2bn to R586bn, which was an optimistic R33bn higher than June 2016.