SA’s formal employment improved in the September quarter while GDP contracted, according to Stats SA.
The quarterly employment statistics (QES) survey results released by Stats SA this month showed total employment in the formal nonagricultural sector rose 0.3%, bringing the level of employment to 10,176,000. On an annual basis, 256,000 jobs were added to the economy in the quarter.
Minister in the presidency Khumbudzo Ntshavheni welcomed the survey outcome, and said the rise in employment shows that measures put in place by the government and the partnership with business and labour to reduce unemployment and create opportunities for more jobs are steadily and firmly gaining traction despite the economy facing domestic and global challenges.
“Government remains resolute in resolving the domestic constraints to the economy as indicated by the recently cabinet-approved freight and logistics road map and the integrated resource plan 2023,” she said.
Ntshavheni said these interventions would help facilitate economic growth opportunities to reverse the 0.2% contraction in real GDP in the third quarter.
While important, the QES is an enterprise-based survey, and reports only on formal nonagricultural employment and earnings trends.
Economists have noted that this survey diverged sharply in recent quarters with Stats SA’s other labour market survey, the household-based quarterly labour force survey (QLFS), which covers the formal, informal and agricultural sectors.
Stats SA said the community services sector played a significant role in the September quarter, contributing 42,000 jobs.
The trade industry expanded by 4,000 jobs, while transport and mining added 2,000 each.
Jobs in community services rose 16,000, while the electricity industry reported a modest gain of only 1,000.
Total gross earnings of employees also rise in the quarter with a 2% increase from the June quarter to R850.3bn.
Stats SA said the upswing was driven primarily by growth in earnings in business services, community services, mining, manufacturing, electricity and construction.
On the negative side, the number of full-time employees saw fell 3,000, resulting in the total full-time workforce reaching 8,789,000 in September 2023.
The business services industry lost 17,000 full-time jobs, manufacturing 4,000 and construction 3,000.
Other interesting data captured in the survey includes bonus payments that rose 3.7% to R51bn. The data shows growth was notable in business and community services, while transport, trade, manufacturing, construction, and electricity declined.
Year-on-year bonus payments rose 9.5% for the quarter, while overtime payments fell R408 million to R25bn.
“Declines were observed in trade, manufacturing, community services, electricity, and transport,” said Stats SA.
Conversely, the business services and transport sectors experienced an uptick in overtime payments.
North-west University professor Raymond Parsons said sustained job-rich growth in SA needs rising total fixed investment, especially private fixed capital formation.
Parsons said that while there is welcome evidence of increased private investment in alternative sources of energy, total fixed investment remains at only about 15% of GDP, well below the 30% target by 2030 set by the National Development Plan if the economy is to reach much higher levels of job-rich growth.
“The economic outlook for SA will remain a tough and challenging environment,” said Parsons, with the economy likely to continue to grapple with domestic and global headwinds as it moves into 2024.
He said that contrary factors in recent months included GDP numbers what were worse than expected as well as intensified Eskom blackouts in the fourth quarter.
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