/ 29 October 2009

SA unemployment rate increases

South Africa’s official jobless rate increased to 24,5% of the labour force in the third quarter of 2009, from 23,6% in the second quarter, while the labour force fell sharply, a report showed on Thursday.

In its latest quarterly Labour Force Survey, Statistics South Africa (Stats SA) said the total number of unemployed people stood at 4,19-million in the three months to September.

Stats SA said the number of employed people fell by 484 000 to 12,89-million.

The rise in unemployment was exacerbated by a fall in employment, with 510 000 people either giving up looking for work or taking themselves out of the labour force completely — some opting to further their studies.

”These patterns suggest that there was a shift from employment into unemployment, discouragement and inactivity,” Stats SA said.

”They show the continued deterioration in the South African labour market … job losses were widespread, affecting most industries.”

The manufacturing sector, one of the hardest-hit by a global downturn and domestic recession, shed 150 000 jobs — 8% of total jobs for the industry — while wholesale and retail trade lost 110 000 jobs.

The expanded definition of unemployment, which includes those people that have given up looking for work, climbed to 34,4% from 32,5%. — Reuters