At least 133 000 jobs in the formal non-agricultural sectors were lost in the third quarter of 2024 as both full-time and part-time employment declined on the back of subdued economic activity.
According to the Quarterly Employment Statistics (QES) survey released by Statistics South Africa (Stats SA) yesterday, total employment in the formal non-agricultural sector fell by 133 000, or a 1.2% decline quarter-on-quarter, bringing the level of employment from 10.74 million in June to 10.6 million in September.
The latest employment numbers align with the quarterly economic contraction of 0.3% recorded in the third quarter, with many of the jobs shed in community services, primarily reflecting part-time jobs lost between the two quarters.
“The outcome is reflective of a still largely subdued economy, which continues to face a number of challenges, notably on the logistics front,” said Lara Hodes, economist at Investec.
“The hastened implementation of key reforms by the new Government of National Unity (GNU) is imperative to lift sentiment, driving a sustainable increase in growth and job creation.”
According to the survey 294 000 jobs were lost between September 2023 and September 2024.
“The community services industry experienced the most significant job losses, shedding 131 000 jobs. This was followed by the business services industry, which lost 15 000 jobs during the same period,” said Stats SA.
“Other sectors also faced declines, with manufacturing down by 4 000 jobs, transport by 3 000 jobs, mining by 2 000 jobs, and electricity by 1 000 jobs. Despite the overall decline in employment, the trade and construction industries saw increases of 19 000 and 4 000 jobs, respectively.”
According to the QES survey, full-time employment decreased by 14 000 jobs, falling from 9 468 000 in the second quarter of 2024 to 9 454 000 in the third quarter of 2024.
Several industries saw declines in full-time employment, with the business services sector experiencing a reduction of 22 000 jobs followed by the manufacturing sector with a loss of 5 000 jobs.
FNB senior economist, Koketso Mano, said the outlook on the South African economy has improved, with growth expected to approach 2% as early as next year.
Mano said structural reform, and related investment, should support a more conducive operating environment, productivity, profitability, and employment creation.
“Furthermore, structurally lower operating costs will be key to lowering broader inflation and lifting real incomes. The near-term gains from infrastructure maintenance and investment should be to sectors such as construction, bar any crime-related impediments, while a lower cost-of-living and rising domestic demand should support sectors such as manufacturing, trade, and finance,” Mano said.
“Over the longer term, gains should be more broad-based as per capita shares gradually rise, South Africa’s attractiveness improves, and innovation lifts.
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