Latest data: Construction sector creates most employment

The drop in unemployment – from 32.6% to 21.9% – may be a coup for the ANC, and a good reason to beat the drums. The party, which is facing the prospect of falling below 50% in the 2024 general election, could be smiling all the way to the ballot box next year after the latest, improved, jobless numbers.

Senior party officials predicted it would get just 38% of the vote at next year’s election and could be out of power. This was even lower than the predictions by political analysts who put it at between 46% and 50%.

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The Quarterly Labour Force Survey indicated that the number of employed persons increased by almost 400 000 to 16.7 million in the third quarter, compared to 16.3 million in the second quarter. This figure even exceeded pre-Covid employment level – which was around 16.5 million.

The main contributor to the job creation was the construction sector, which was hardest hit by the pandemic and budget cuts. Some of the major infrastructural projects were shelved due to budgetary constraints as the government prioritised financial resources to fight the pandemic.

Where the jobs are

The sector managed to create 134 000 new jobs this year. The recovery is attributed to President Cyril Ramaphosa’s post-pandemic recovery plan, which was criticised as a little too late by opposition parties and opponents within the governing alliance.

But the recovery could be hampered by the decision to implement further budget cuts announced by Finance Minister Enoch Godongwana during his recent medium-term budget. The minister revised public expenditure down by R21 billion in the current financial year.

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The reductions would as high as R64 billion and R69 billion, respectively, he said. These were based on current revenue projections and excluding future revenue forecast revision. But Ramaphosa promised that, despite the fact that the state was on course to prudently manage government expenditure, it would retain its focus on infrastructure, health, education and policing as critical areas of growth and development.

Taking credit

He said major projects would be a priority The ANC welcomed the news of a rise in employment. “This is the result of economic reforms implemented by the ANC-led government, which have boosted increased infrastructure investment including significant new investment in roof-top solar systems and other electricity-related investment,” the party said.

A total of 450 000 new jobs in finance and 235 000 in social services were created. Joblessness among graduates had declined to 8.5%, from 10.7% last year. Individuals not in training or employed declined from 34.5% of those between 15 and 24 years in the third quarter of 2022, to 32.7% in 2023. “The improvement is a testament to our ongoing efforts to address economic challenges,” the ANC said.

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