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South Africa – Report says 69,000 jobs lost in Q2; country in recession

27 September 2018

South Africa lost 69,000 jobs in the second quarter of this year compared to the first, according to a report released Wednesday by Statistics South Africa. Total employment was 9.7 million at the end of the second quarter.

Earlier this month, Statistics South Africa reported the country had fallen into a recession with GDP shrinking 0.7% in the second quarter on a seasonally adjusted and annualised basis. It had contracted 2.6% in the first quarter — two quarters of negative GDP growth are recognised as an indicator of recession.

In the second-quarter jobs report, the community services industry posted the largest decrease in jobs, 67,000, in the second quarter. Employment in the industry had increased during the first quarter amid hiring of casual workers for the upcoming 2019 national election registration drive.

However, viewing the change in the number of jobs on a year-over-year basis, South African employment edged up 0.1% in the second quarter, or 13,000, jobs compared to the second quarter of last year. Employment fell year-over-year in several industries but rose in others.

Industries seeing year-over-year decreases include:

  • Mining and quarrying, down 4.0%, or 19,000 jobs
  • Construction, down 2.3%, or 14,000 jobs
  • Electricity, down 1.6%, or 1,000 jobs
  • Manufacturing, down 1.0%, or 12,000 jobs
  • Transport, down 0.9%, or 4,000 jobs.

The mining and quarrying industry has lost jobs for four consecutive quarters, going to 452,000 jobs in the second quarter of this year from 471,000 in the second quarter of 2017.

Among industries gaining jobs year-over-year in the second quarter, trade (such as retail trade and hotels and restaurants) reported the largest increase, up 1.1%, or 24,000 jobs.

Statistics South Africa’s report is based on companies with annual revenue of more than 300,000 that also employ people. The survey sample was approximately 20,000. It excluded agriculture, the informal sector and domestic work.

In a separate look-back report, employment in the “labour recruitment and provision of personnel” industry in South Africa fell to 222,496 in 2016, down from 265,478 in 2010, according to a separate report released Thursday by Statistics South Africa. Turnover in the industry was ZAR 37.21 billion (US$2.72 billion) 37,207,000,000 in 2016, up from ZAR 25.49 billion (US$3.8 billion) in 2010.