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Jobs losses prompt calls for meaningful job creation efforts

SA's official unemployment worsened in the second quarter‚ leading statistician-general Pali Lehohla and some economists to reiterate calls for education and labour policies that will address joblessness.
Jobs losses prompt calls for meaningful job creation efforts

Official unemployment deteriorated to 25.6% in the second quarter from 25.2% in the first‚ as more people lost jobs in the manufacturing‚ agriculture and community sectors‚ while more started looking for work‚ Statistics SA said on Tuesday (30 July).

There was a net gain of 100‚000 in employment in the quarter‚ although this was offset by an additional 122‚000 more people looking for jobs.

"In the context of SA's muted economic growth‚ a net gain of 100‚000 people being employed is not a bad figure but the high level of unemployment remains a national emergency‚" Investment Solutions chief economist Chris Hart said.

The latest unemployment rate means that approximately 4.7m people were unemployed in the second quarter‚ 254‚000 more than the second quarter of last year.

Sluggish, uncertain growth

The sluggish and uncertain economic growth environment is among factors contributing to the very low levels of employment creation.

"The likelihood is that weak economic growth will continue to drive up unemployment in SA this year‚ in an environment of already high (structural) unemployment‚" Investec chief economist Annabel Bishop said.

The expanded unemployment rate‚ which includes those who have stopped looking for work‚ was reported to be 36.8% of the labour force‚ 0.1 of a percentage point higher than the first quarter.

"We need to start addressing the question of unemployment‚" Lehohla said.

Manufacturing‚ the economy's second biggest sector‚ shed 18‚000 jobs between the first and second quarters‚ while agriculture shed 26‚000 jobs.

The community and social services sector‚ which includes public sector jobs‚ shed 22‚000 jobs.

"We are not expecting the economy to pick up soon and a high number of people will be looking for jobs. This will keep the unemployment numbers high‚" Nedbank economist Johannes Khosa said.

Both the formal and informal non-agricultural sectors grew by 1.1% and 1.4% respectively in the second quarter while the construction‚ trade and finance and other business services were the biggest contributors to the 100‚000 net gain in employment in the second quarter.

Construction gained 62‚000 jobs in the quarter‚ after losing 41‚000 jobs in the first quarter. Trade gained 52‚000 jobs‚ the first gain in this sector after five successive quarters of job losses and finance and other business services grew by 37‚000 in the second quarter after two successive quarters of job losses.

Source: I-Net Bridge

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