Unemployment rate stagnates, shows government survey

IT came as a shock when unemployment rates of 29,1 per cent remained unchanged in the fourth quarter of 2019. A steady rate of unemployment like this has not occurred since 2008.

Annual government surveys reveals unemployment usually alleviates in the fourth quarter of the year.

This according to Statistician General, Risenga Maluleke who released the survey results of the Quarterly Labour Force Survey (QLFS) for the fourth quarter of 2019 on Tuesday in Tshwane.

While the last quarter of 2019 saw the number of employed persons increase by 45 000 to 16.4 million, the South African working-age population increased by 145 000, compared to quarter three of 2019.

In the same period, the number of unemployed persons decreased by 8 000 to 6.7 million in quarter four of 2019, compared to quarter three of 2019, resulting in an increase of 38 000 in the labour force.

Maluleke said employment increased in two of the four sectors in quarter four of 2019.

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“The number of discouraged work seekers increased by 62 000 and those, who were not active in the labour market for reasons other than discouragement, increased by 45 000, resulting in a net increase of 107 000 in the number of those who were not economically active,” he said.

The survey further revealed that the formal sector recorded the largest employment increase, with 117 000. The sector was followed by agriculture, with 6 000.

“Employment in the formal sector declined by 77 000 and remained unchanged in the private households,” the Statistician General said.

The increase of 45 000 in the number of people employed in the fourth quarter of 2019 was mainly driven by community and social services with 113 000, followed by finance (76 000) and transport with 36 000.

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However, the survey revealed, there were declines in employment in trade (159 000), manufacturing (39 000) and utilities (14 000).

“There were approximately 10.3 million persons aged 15 – 24 years in quarter four of 2019. The share of these young people who were not in employment, education or training (NEET) decreased by 0.4 of a percentage point from 32.3 per cent in quarter three of 2019 to 32 per cent (3.3 million) in quarter four of  2019. Of the 20.4 million young people aged 15 – 34 years, 40.1 per cent were not in employment, education or training in Q4: 2019 – a decrease of 0.3 of a percentage point, compared to the third quarter of 2019,” said the report.

Over the past 10 years, between quarter four of 2009 and quarter four of 2019, unemployment rates increased by 5 per cent.

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