SA’s formal economy continues to shed jobs
by Staff Writer
2016-10-07 14:43:04.0
THE formal economy lost 67,000 jobs in the second quarter — accelerating from the 15,000 jobs lost in the first quarter.
Employment in the formal nonagricultural sector fell to 9,218,000 at end-June from 9,285,000 at end-March, Statistics SA said in its Quarterly Employment Statistics for the second quarter, released on Friday.
SA’s high unemployment is one of the factors that have been constraining consumer spending — an important driver of economic growth.
International rating agencies are keeping an eye on SA’s growth, and the steps it is taking to address the structural impediments to faster growth, as they prepare to review the country’s credit rating later this year.
The biggest quarter-on-quarter declines were seen in the following sectors:
• community services: down 48,000 or 1.8%;
• manufacturing: down 7,000 or 0.6%;
• transport: down 7,000 or 1.5%;
• trade: down 4,000 or 0.2%; and
• mining and quarrying: down 1,000 or 0.2%
The mining and manufacturing sectors have been under sustained pressure this year. Manufacturing output increased in July, the latest data showed, but at just 0.4% year on year, a much slower pace than expected. Mining output, meanwhile, continued to shrink, and at a faster pace than before.
Year on year, the mining and quarrying industry lost 32,000 jobs — a fall of 6.5%.
The construction industry posted an increase of 1,000 jobs compared with the previous quarter, Stats SA said on Friday.
Earnings
Despite the job losses, remuneration increased very slightly.
Gross earnings paid to employees rose by R32m or 0.01% in the quarter, from R523.3bn in March to R523.34bn in June.
Average monthly earnings, including bonuses and overtime payments, for all industries in the formal nonagricultural sector increased 3.7% from R17,396 in February 2016 to R18,045 in May 2016.
The US is also reporting nonfarm payrolls data on Friday, and the expectation is for an increase of about 175,000, which is in line with the average for the year.
With Reuters
Prospective job seekers queue to be registered outside the Alberton Civic Centre during a youth job creation initiative in June 2015. Picture: THE SOWETAN
THE formal economy lost 67,000 jobs in the second quarter — accelerating from the 15,000 jobs lost in the first quarter.
Employment in the formal nonagricultural sector fell to 9,218,000 at end-June from 9,285,000 at end-March, Statistics SA said in its Quarterly Employment Statistics for the second quarter, released on Friday.
SA’s high unemployment is one of the factors that have been constraining consumer spending — an important driver of economic growth.
International rating agencies are keeping an eye on SA’s growth, and the steps it is taking to address the structural impediments to faster growth, as they prepare to review the country’s credit rating later this year.
The biggest quarter-on-quarter declines were seen in the following sectors:
• community services: down 48,000 or 1.8%;
• manufacturing: down 7,000 or 0.6%;
• transport: down 7,000 or 1.5%;
• trade: down 4,000 or 0.2%; and
• mining and quarrying: down 1,000 or 0.2%
The mining and manufacturing sectors have been under sustained pressure this year. Manufacturing output increased in July, the latest data showed, but at just 0.4% year on year, a much slower pace than expected. Mining output, meanwhile, continued to shrink, and at a faster pace than before.
Year on year, the mining and quarrying industry lost 32,000 jobs — a fall of 6.5%.
The construction industry posted an increase of 1,000 jobs compared with the previous quarter, Stats SA said on Friday.
Earnings
Despite the job losses, remuneration increased very slightly.
Gross earnings paid to employees rose by R32m or 0.01% in the quarter, from R523.3bn in March to R523.34bn in June.
Average monthly earnings, including bonuses and overtime payments, for all industries in the formal nonagricultural sector increased 3.7% from R17,396 in February 2016 to R18,045 in May 2016.
The US is also reporting nonfarm payrolls data on Friday, and the expectation is for an increase of about 175,000, which is in line with the average for the year.
With Reuters
