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South Africa – Jobs fall by 16,000 in Q3, but country is out of recession

12 December 2018

Employment in South Africa fell by 16,000 jobs in the third quarter compared to the second for total employment of 9.7 million, Statistics South Africa reported on Tuesday. However, year-over-year, the number of jobs was up by 17,000 in the third quarter. The agency also reported earlier this month that the country’s recession ended as third-quarter GDP grew by 2.2% on a quarter-over-quarter basis in Q3 on a seasonally adjusted and annualised basis.

Manufacturing was the main driver of growth in the third quarter with the industry growing by 7.5% largely as the result of increased production of basic iron and steel, metal products and machinery, wood and paper, petroleum products, and motor vehicles. The “transport, storage and communication” industry was the second-largest contributor, growing by 5.7% in the third quarter.

South Africa’s economy had contracted by 2.6% in the first quarter and 0.4% in the second. Two consecutive quarters or negative growth is generally recognised as an indicator of recession.

When it came to employment in the third quarter, manufacturing posted the largest decrease in jobs, losing 7,000 jobs in the third quarter compared to the second. Construction was next, losing 5,000 jobs.

Average monthly earnings paid to employees in the formal nonagricultural sector rose ZAR 20,860 (USD 1,478) in August from ZARR 19,865 (USD 1,408)  in the same month a year ago.