Formal sector job losses Stats SA

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Stats SA reports 3 000 job losses in SA’s formal sector prior to lockdown

The formal sector report details employment up to the first quarter of 2020, therefore, it’s not indicative of how it was affected by COVID-19 and the lockdown.

Formal sector job losses Stats SA

Image via: Adobe Stock

According to the Quarterly employment statistics survey released by Stats SA on Tuesday 28 July, the formal sector shed 3 000 jobs in the first quarter of 2020, just before the national lockdown.

This brings the total number of persons employed in the formal sector in South Africa to 10.2 million. According to the report, formal sector jobs rose by 3 000 in the first quarter, year on year.

The latest report includes employment in the formal sector up to the first quarter ending March 2020 and is, therefore, not indicative of the impact on employment due to the COVID-19 pandemic. This does show, however, that there all was not well before the pandemic docked.

The job losses recorded during the period of the lockdown will most likely be far greater.

JOB LOSSES RECORDED IN FORMAL SECTOR IN FIRST QUARTER OF 2020

According to Stats SA, job losses were reported in the trade industry with 17 000 in the first quarter. Losses were mainly put down to decreases in employment in the retail and wholesale trade sub-industries by 14 000 and 3 000 employees respectively. 

Employment in the construction industry decreased by 14 000 jobs.

Job losses were also seen in the manufacturing industry with an annual decrease of 28 000 employees in March 2020 compared to March 2019 and a quarterly decrease of 2 000 employees in March 2020 compared to December 2019. 

Stats SA said this was mainly due to decreases in employment in the wood and products of wood and cork, except furniture, articles of straw and planting materials, paper and paper products, publishing, printing and reproduction of recorded media and transport equipment sub-industries.

The community, social and personal services industry reported annual growth of 54 000 employees in March 2020 and an increase of 17 000 employees between the quarters ending December 2019 and March 2020. These gains were mainly due to increases in employment in provincial departments, local government, national departments, health and social work, and universities and technikons. 

The business services industry grew by 8 000, mining by 3 000 and the transport industry with 2 000 jobs. Full-time jobs increased by 18 000 quarter-on-quarter, whilst 37 000 jobs were lost compared to the same period last year.

During the March 2020 quarter, part-time jobs declined by 21 000, while 40 000 jobs were added year-on-year.

GROSS EARNINGS

Gross earnings paid for the quarter decreased by R46.7 billion when compared to the previous quarter. The total amount of gross earnings estimated for the quarter was R730.3 billion.

This is down from R777 billion in the previous quarter. There was a 4.3% year-on-year increase in earnings in the current quarter compared to March 2019, amounting to R30 billion.

The decrease in earnings was driven by the community services industry, with a decrease of R10.8 billion. 

This was followed by decreases in the following industries: 

  • Trade industry down by R8.2 billion; 
  • Manufacturing industry down by R8.2 billion; 
  • Business services industry down by R8.0 billion; 
  • Transport industry down by R5.5 billion; 
  • Construction industry down by R4.5 billion; and 
  • Electricity industry down by R1.6 billion. 

Earnings in the mining and quarrying industry increased by R22 million.

Average monthly earnings were measured at R22 387 in the formal sector of the economy in February 2020. This is a -0.2% decrease when compared to November 2019, and an annual increase of 5.4%.

One may download the full report here.