SA economy creating jobs again

24 March 2010

Eighteen thousand jobs were created in South Africa’s formal non-agricultural business sector between September and December 2009, Statistics South Africa (Stats SA) announced in Pretoria on Tuesday.

Reporting on its December 2009 Quarterly Employment Statistics, Stats SA said the survey had shown that the number of people employed in the formal non-agricultural sector of the country’s economy increased by about 18 000 (or +0.2%) from an estimated 8 143 000 employees to an estimated 8 161 000 employees.

This is an improvement from the figures for the second quarter of 2009, when South Africa’s formal job losses totalled 98 000.

Increase in gross earnings

Additionally, the gross earnings paid to employees in the formal non-agricultural business sector increased between the same quarters.

“The gross earnings paid to employees during the quarter ended December 2009 amounted to R294 509-million. This reflects a quarterly increase of R31 485-million (or +12%) compared with the quarter ended September 2009,” Stats SA said.

However, employment in the formal non-agricultural business sector decreased between the quarters ended December 2008 and December 2009.

“The December 2009 Quarterly Employment Statistics survey shows that an estimated 8 161 000 people were employed in the formal non-agricultural business sector of the South African economy. This reflected an annual decrease of about 351 000 employees (or -4.1%) compared with December 2008 (an estimated 8 512 000 employees).”

Annual growth

Gross earnings paid to employees in the formal non-agricultural business sector increased between the quarters ended December 2008 and December 2009. According to Stats SA, in the December 2009 quarter, gross earnings paid to employees amounted to R294 509-million.

“This reflects an annual increase of R20 552-million (or +7.5%) compared with the quarter ended December 2008 (October 2008 to December 2008).”

Commenting on the figures, Standard Bank said: “Today’s data reflect labour market conditions that are slowly being nursed back to health. However, the labour market’s lagging indicator characteristics suggest that a substantial revival is only likely to ensue once economic conditions are more labour absorbing.

“Softness in employment growth is thus likely to endure for some time.”

Source: BuaNews