Major job losses and unemployment increases in SA

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PRETORIA, July 31 – The official unemployment rate in South Africa has increased by 0.5 percentage points to 27.2 percent in comparison to the first quarter of 2018, Statistician General Risenga Maluleke said on Tuesday.

Maluleke was releasing the Quarterly Labour Force Survey (QLFS) for the second quarter of 2018 in Pretoria.

The report shows that the increase in the unemployment rate is a result of a decline of 90,000 in the number of people employed, and an increase of 102,000 in the number of people who became unemployed between the first and second quarters of 2018.

This was coupled with an increase in the number of discouraged work-seekers to 2.9 during the period under review.

“The South African working-age population increased by 154,000 or 0.4 percent in the second quarter of 2018 compared to the first quarter of 2018,” said Maluleke.

“Employment gains of 22,000 were recorded in private households while the formal sector, the informal sector, agriculture recorded employment losses between the first and second quarters of 2018.”

The number of discouraged work-seekers increased by 77,000 while the number of those not economically active increased by 65,000, resulting in an increase of 141,000 [up by 0.9 percent] in the number of people not in the labour force between the first and second quarters of 2018.

The industry that recorded the most job losses was manufacturing, which accounted for 105,000 job losses followed by community, social and personal services and trade. Employment increases were recorded in transport, construction, mining, private households and utilities industries.

“At a national level, the official unemployment rate increases by 0.5 percentage point to 27.2 percent in the second quarter of 2018, compared to the first quarter,” said Maluleke.

– African News Agency (ANA)