The unemployment rate increased by one percentage point between the fourth quarter of 2010 (24%) and the first quarter of 2011 (25%), Statistics SA said on Tuesday, as it released its labour force survey for the first quarter of 2011.
The number of unemployed persons increased by 227 000 between the fourth quarter and the first quarter, while the number of discouraged work-seekers increased by 73 000 in the same period.
The number of persons in the labour force increased by 213 000 between the fourth quarter and the first quarter, while employment decreased by 14 000 between the fourth quarter and first quarter.
The formal sector gained 56 000 jobs but the informal sector lost 46 000 jobs.
Agriculture lost 24 000 jobs, but employment in private households remained virtually unchanged.
Compared with the first quarter of 2010, there was an annual increase of 0,3% (or 42 000) in employment, a decrease of 0,7% (or 31 000) in the number of unemployed persons, and an increase of 3,4% (or 486 000) in the number of persons who were not economically active — 353 000 of which were discouraged work-seekers.
Between the fourth quarter of 2010 and the first quarter of 2011, job losses were experienced in most provinces except Gauteng (46 000), Western Cape (12 000) and Mpumalanga, which remained virtually unchanged. The biggest job losses were recorded in Limpopo, where 22 000 jobs were lost, followed by North West, with 18 000 job losses, and Northern Cape, with 17 000 job losses. However, the biggest impact was in the Northern Cape, where the province shed 6,1% of its employment.
The quarterly labour force survey is a household-based sample survey conducted by Statistics SA. It collects data on the labour market activities of individuals aged 15 years and above who live in SA. However, this report only covers labour market activities of persons aged 15 to 64 years.
‘Disappointing’
Meanwhile, Nedbank economists said in a note shortly after the release of the labour force survey that the country’s unemployment figures were “disappointing”.
The survey found that the unemployment rate increased to 25% in the first quarter of 2011 from 24% in the final quarter of last year.
Nedbank added that the figures underlined the “hesitant nature” of the economic recovery.
“This, together with lingering concerns about power and transport infrastructure constraints, and ample spare capacity will contain the pace of employment creation, keeping the unemployment rate high.”
The sectoral breakdown showed that the highest number of jobs losses were recorded in the transport sector and construction sectors, down by 34 000 and 25 000 respectively.
However, employment in the financial sector remained firm, with 37 000 jobs created. Employment in the manufacturing and mining sectors also increased by 20 000 and 15 000 respectively.
The number of discouraged work seekers increased further over the quarter, rising by 73 000 following a 117 000 jump in the last quarter of 2010. — I-Net Bridge