The local economy continues to shed jobs at an alarming rate, with new data from Statistics South Africa (Stats SA) revealing a significant decrease in formal sector employment for the second quarter of the year.
The latest figures show total employment decreased by 80,000, or 0.8%, continuing a negative trend from the first quarter. Combined, the first half of the year has seen approximately 150,000 jobs lost. The picture remains bleak in a year-on-year comparison, with total employment in June falling by 229,000, or 2.1%, compared to the same time last year.
The job losses were widespread, affecting both full-time and part-time positions. A spokesperson analyzing the data described “broad-based weakness,” noting that six of the eight major economic sectors reported declines. Significant decreases were recorded in community services, trade, manufacturing, construction, transport, and business services.
“The direction of travel here for employment isn’t great,” the spokesperson stated, acknowledging that while the economy is under pressure, the high levels of unemployment remain “unacceptably high.” They emphasized that the data “continues the story that more work needs to be done to boost employment.”
The manufacturing sector was highlighted as a particular area of concern, having failed to recover to pre-COVID production levels for years. Job losses in that sector are seen as a direct reflection of its ongoing struggles.
The community services sector, a broad category that includes government, health, and education services, was also identified as being “particularly under pressure,” especially compared to the previous year.
Despite the dismal employment figures, the report contained a sliver of positive news for the mining and electricity sectors, which saw job gains. Furthermore, gross earnings increased in the second quarter, largely due to raises in several industries, including community services, trade, and manufacturing. However, this was offset by a decrease in bonuses and overtime pay awarded to employees.
The data solidifies concerns that the local economy is facing significant headwinds, with job creation remaining a critical challenge.