Part-time jobs drive rise in employment

• The main gains were in the the community services, business services, mining and electricity sectors, while manufacturing, construction and transport fell

The number of South Africans with jobs rose 0.4% quarter on quarter in the three months to end-June, driven mainly by an increase in part-time jobs, according to official data.

Stats SA’s latest Quarterly Employment Statistics (QES) shows total formal employment rose by 39,000, to 10.078million from 10.039-million at the end of March, mainly due to increases in the community services, business services, mining, and electricity sectors.

However, the manufacturing, transport and construction sectors experienced a decline.

Investec economist Lara Hodes said the manufacturing sector shed 10,000 jobs during the quarter, with persistent loadshedding, logistical constraints and subdued global demand weighing on production.

Stats SA publishes two labour market surveys.

The QES is an enterprisebased survey of the formal nonagricultural sector. The Quarterly Labour Force Survey is a household-based survey that covers the formal, informal and agricultural sectors.

The formal employment data also brings the consumer into the spotlight. Consumers have had to bear the brunt of high unemployment rates, the elevated inflation rate and high interest rates which drive the cost of borrowing.

Stats SA said part-time employment was the driver of overall formal employment in the second quarter, rising by 64,000 jobs to reach 1.287million from 1.223-million in March.

The improvement was driven by the community services sector, business services sector, construction and electricity.

Full-time employment fell by 25,000 employees in the review quarter, to 8.791-million from 8.816-million in the prior three months.

The data shows the decrease was mainly due to declines in community services, manufacturing, construction, and transport sectors.

Regular salary and wages paid to employees rose 2.6% or R19.3bn in the second quarter, reaching R757.8bn from R738.5bn in March.

The increase was mainly due to the growth in salaries and wages in community services, business services, trade, manufacturing, construction, transport and mining.

But the drop in formal employment shows that sticky inflation and tighter financial conditions, along with local energy and logistical constraints, are likely to impede employment prospects.

FNB economists warned that taking these factors into account, the increase in the local cost of doing business could weigh on profitability and wage and salary bargaining.

“While the recovery in earnings has outpaced that in employment, these headwinds should constrain growth in both measures in the near term,” FNB economists said.

“Over the longer term, continued investment in alleviating productivity constraints should usher in more robust economic growth and support more broad-based and inclusive employment growth.”