Job creation in trade, transport, and electricity help ease job losses

Statistics South Africa this morning reported a slowdown in the number of jobs lost in the formal economy, with a decline of 0.1% quarter-on-quarter when compared to the September period.

It said that, in the three months to December, the reason behind the flat figures was due to gains in sectors such as trade, business services, transport, and electricity.

However, the agency’s report noted that there were again declines in community services, as well as the key sectors of manufacturing, construction and mining.

Year-on-year, job losses were more pronounced, with a 0.8% decline in formal employment. 

Statistics South Africa also noted that full-time employment dropped 0.1% quarter-on-quarter, and 0.3% year-on-year. Part-time employment, however, increased thanks to gains in trade, construction, and business services. 

Year-on-year, gross earnings increased by R35.5 billion or 3.6%. This is above the current inflation rate of 3.2%, although the cost of living has fluctuated during the period under review, having peaked at 5.6% last February.

In the quarter to September last year, the figures for which were released in December, jobs declined by 1.2% quarter-on-quarter, although the yearly decline was more substantial, at 2.7%.

Statistics South Africa’s print for the September quarter showed that the biggest decline in jobs was in what the agency terms community services, which Dr Azar Jammine, director and chief economist at Econometrix, explains is due to the government having to scale back on its wage bill.

Government debt is currently at 72.2% of gross domestic product, with expectations of it reaching 75.3% for last year, based on International Monetary Fund data.

In the previous quarter, the second biggest decline in jobs was in business services, followed by manufacturing, transport, and then mining. However, trade and construction reported gains, albeit small.

IOL