Manufacturing and trade sectors hit hard.
- New data released by Statistics South Africa (Stats SA) shows that formal employment in South Africa fell by 1.2% in the first quarter of 2023, resulting in a loss of 164,000 jobs.
- The data shows that the largest declines in employment were in the manufacturing, trade, and business services sectors.
- The unemployment rate in South Africa remained unchanged at 27.6% in the first quarter, as the decline in formal employment was offset by an increase in informal employment.
- The decline in formal employment is a concern, as formal jobs typically offer better wages and benefits than informal jobs.
- The potential reasons for the decline in formal employment, including the ongoing impact of the Covid-19 pandemic, as well as structural factors such as automation and the shift towards the gig economy.
- It’s important for South Africca tp of addressing the root causes of the decline in formal employment, such as the need for more investment in infrastructure and skills development, in order to create more sustainable job opportunities in the future.