Unemployment rises in first quarter of 2013

"Unemployment increased by 100 000 to 4.6 million resulting in an increase in the unemployment rate to 25.2%," Deputy Director General: Population and Social Statistics Kefiloe Masiteng said at the release of the Quarterly Labour Force Survey (QLFS).

The QLFS is a household-based sample survey conducted by Stats SA. It collects data on the labour market activities of individuals aged 15 years and above who live in South Africa.

In the fourth quarter of 2012 the country's unemployment rate [which is the proportion of the labour force that is unemployed] declined to 24.9% from 25.5% in the third quarter.

Stats SA defines someone who is unemployed as aged between 15 to 64 who was not employed in the reference week of the QLFS and has been actively looking for work in the four weeks preceding the survey interview and is available for work or for starting a business.

According to the survey, the number of discouraged work seekers -- who are defined as people who were not employed during the reference period, wanted to work but did not take active steps to find work due to no jobs being available among others -- increased by 73 000 people to 2.3 million between the fourth and first quarter.

The expanded unemployed rate was at 36.7% in the first quarter, the highest it has been since 2008. The expanded unemployment rate includes those who have stopped looking for work.

South Africa's economy lost about one million jobs in the recession while the highest level of employment (before the recession) at 14 million was seen in the fourth quarter of 2008.

There were a total 13.6 million people employed in the country.

"Since the lowest level of employment in the third quarter of 2010 (at 12.9 million), the economy has created 646 000 jobs. This is still 406 000 jobs lower than the levels observed in the fourth quarter of 2008," said Stats SA.

The proportion of those who are employed or looking for work (labour force participation rate) among the country's working age population declined by 3.6% to 54.8% between the first quarter of 2008 and the first quarter of 2013.

The QLFS also found that the formal and informal sectors contracted by 0.3% (25 000 jobs) and 0.6% (13 000 jobs) respectively between quarter four 2012 and quarter one of 2013.

"However, both sectors grew by 0.8% and 4.1% respectively compared to a year ago (quarter one 2012).

Six industries contributed positively to the net gain of 44 000 jobs observed in the first quarter on a quarter to quarter basis. The biggest contributors were agriculture followed by community and social services.

Earlier today, in its research note Absa Capita said it expected a rise in the unemployment rate due to weak growth and labour shedding in the private sector, particularly in the mining sector.

"Last year, the unemployment rate rose by a full percentage point to 24.9% over the course of 2012. In fact, we think the unemployment rate rose further in quarter one because quarter four typically sees a seasonal uptick in employment," said Absa Capital in its Monday morning report.