67 000 job losses recorded in second quarter

Friday, October 7, 2016

Pretoria - There were an estimated 9 218 000 jobs reported in the formal non-agricultural sector in June 2016, reflecting a decrease of 67 000 jobs quarter-on-quarter, Statistics South Africa (Stats SA) said on Friday.

Releasing the findings of the Quarterly Employment Statistics (QES) for the second quarter of 2016, Statistician General Pali Lehohla said job losses occurred in all industries, except in electricity and construction.

Job losses were seen in community, social and personal services (-48 000 or -1.8%), manufacturing (-7 000 or 0.6%), transport and communication (-7 000 or -1.5%) and in trade (-4 000 or 0.2%), among others.

However, the QES -- which is an enterprise based sample survey that measures changes in employment across all industries in the formal sector of the economy -- saw employment gains in the construction industry (1 000 or 0.2%).

The loss in jobs in the manufacturing sector were in the manufacturing of food products, beverages and tobacco products. There were also losses in the manufacturing of textiles, clothing and leather goods.

Lehohla said current economic conditions are tough.

“The economic conditions are quite stiff. In the second quarter, Gross Domestic Product [GDP] came out strongly [at 3.3%] on the back of mining and manufacturing, yet in both those industries that jobs have been lost in the second quarter. We can read adequately that the growth in GDP largely was a result of base effects.”

Mining declined by 1 000 employees in the second quarter of 2016. This is the eighth consecutive quarter decline observed since the fourth quarter of 2014.

Gross earnings

Gross earnings paid to employees increased by R32 million (0.01%) from R523 311 million in March 2016 to R523 343 million in June 2016.

The increase was due mainly to increases in the community services, transport, construction, manufacturing, mining and quarrying, trade and electricity industries.

On an annual basis average monthly earning paid to employees increased by 7.5% from R16 787 in May 2015 to R18 045 in May 2016. – SAnews.gov.za