Either 4,6-million or 8,4-million people had no jobs in South Africa in March this year — depending on whether one used official or expanded unemployment figures released on Tuesday. This translated into an unemployment rate of either 27,8% or 41,2%, according to the results of Statistics SA’s latest Labour Force Survey (LFS).
The official definition of unemployment requires that a person must have looked for a job in the four weeks prior to the survey interview.
Stats SA said the official unemployment rate had dropped slightly from 28,4% in September last year, and the expanded rate from 42%.
Neither decrease was considered to be statistically significant, ”but may be indicative that the unemployment rate is stabilising”, it said in a statement.
The survey found that the number of employed people rose from 11,652-million to 11,984-million over the six-month period.
”In light of these recent findings, it would appear that rather than employment opportunities being lost, the labour market may be showing initial signs of stability.”
The unemployed did not include full-time students, homemakers, retired people or the disabled.
The survey found that employment in the formal sector (excluding agriculture) had grown from 7,662-million to 8,134-million.
Jobs in commercial agriculture rose from 921 000 to 1,036-million.
Employment in small-scale farming, the informal sector and domestic service remained stable.
The formal sector accounted for the largest share of total employment — 80,4% of men and 63,7% of women.
A total of 8,5% of the employed population were domestic workers.
The percentage of people employed in the formal sector was lowest among blacks (64,6%) and coloureds (85,6%), and highest among Indians (93,8%) and whites (94,4%).
Just over 11% of blacks were employed as domestic workers, compared to seven percent of coloureds and 0,1% of Indians and whites.
The largest group of people (24,1%) employed in the formal sector worked in the community, social and personal services industry. In the informal sector, the largest group (39,6%) worked in trade.
About 15,5% of people working in the informal sector were employed in agriculture — the second largest employer in this sector.
”In contrast, only 10,6% of those working in the formal sector were employed in agriculture, making this industry the fifth largest in terms of formal sector employment.”
The survey found that 1,8-million workers earned up to R500 a month. Just over one million earned a monthly salary of more than R8001.
The largest group of unemployed people were between the ages of 25 and 34, with more than three million falling into this category under the expanded definition.
Most unemployed people had matric as their highest qualification — a total of 2,2-million on the expanded definition. A total of 384 000 had no education, 228 000 had a diploma or certificate, and 60 000 had a degree or higher qualification.
The Free State, Northern Cape and Western Cape were the only provinces to show a downward trend in official unemployment.
Unemployment was highest in the Eastern Cape (32,5%) and lowest in the Western Cape (16,9%).
In its June Survey of Employment and Earnings, also released on Tuesday, Stats SA found that employment in the formal non-agricultural business sector increased from 6,448-million employees in March to 6,531-million.
This reflected an increase of about 83 000 employees or 1,3% between the two months.
Gross earnings during the quarter ended in June amounted to R135,5-billion — an increase of R4,5-billion or 3,4% on the quarter ended in March.
The Democratic Alliance said bold reform was required to prevent a stagnation of unemployment figures.
”… it is concerning that the unemployment crisis seems to be becoming entrenched, especially during what many are calling boom times.”
The government should initiate major structural reforms in labour and investment markets — with the first step being a ”fundamental change in trade unions’ influence over government”. – Sapa