The latest findings from the Quarterly Labour Force Survey (QLFS) by Statistics South Africa shed light on the dynamic employment landscape in the country, highlighting the industries that have made significant contributions to job growth between April and June 2023.
Employment in South Africa: Key statistics for April-June 2023
The report provides insights into the changes in employment figures, shedding light on both gains and losses across various sectors.
The QLFS, conducted by Statistics South Africa, focuses on the labour market activities of individuals aged 15 to 64 years living in the country.
The survey’s second-quarter results for 2023 reveal noteworthy shifts in employment trends and labour force dynamics.
Changes in Working-Age Population
In the second quarter of 2023, the working-age population increased by 142 000 or 0.3% compared to the first quarter.
Year-on-year, the working-age population grew by 568 000 or 1.4%.
The report further highlights a net increase of 143 000 individuals in the labour force, with the number of employed persons rising by 154 000 to reach 16.3 million.
Unemployment rate decreases to 32.6%
The unemployment rate saw a decrease of 0.3 percentage points to 32.6% due to movements of individuals from “not economically active” and “unemployed” categories to “employed.”
This led to a higher labour force participation rate of 59.6%.
The absorption rate, which measures the proportion of employed individuals within the working-age population, increased by 0.2 percentage points to 40.1%.
Industries that contributed the most to employment in South Africa
The QLFS report delineates the employment shifts across various industries during the stated period.
- Formal Sector Gains: Notable gains were recorded in the formal sector, particularly in:
- Trade (71 000);
- Construction (62 000);
- Transport (38 000);
- Community and social services (34 000); and
- Mining (30 000) industries.
- However, the formal sector experienced declines in:
- Manufacturing (53,000);
- Finance (29 000); and
- Utilities (8 000).
- Informal Sector Challenges: The informal sector encountered a decrease of 33 000 jobs, driven by losses in:
- Transport (45 000);
- Manufacturing (44 000); and
- Finance (39 000) industries.
- Year-On-Year Comparison: Compared to the same period in the previous year, the formal sector gained 730 000 jobs, primarily influenced by:
- Trade (216 000)
- Finance (157 000)
- Construction (84 000); and
- Community and social services (79 000) industries.
- Meanwhile, the informal sector showed a net increase, with notable contributions from:
- Community and social services (65 000);
- Construction (44 000); and
- Transport (12 000) sectors.
Among the various sectors, Construction experienced the largest increase in employment, with 104 000 jobs added, followed by Trade (92 000) and Community and social services (63 000).
Conversely, the Manufacturing (96 000), Finance (68 000), Transport (7 000), and Utilities (6 000) sectors observed decreases in employment.