South Africa loses 5000 jobs

South Africa Loses 15,000 Jobs

Jul 4, 2016

According to Statistics SA’s latest Quarterly Employment Statistics (QES) survey, 15,000 formal sector jobs were lost in the first quarter of 2016, to 9.237 million employees.

‘15,000 formal sector jobs were cut’

This fall reflects the economic contraction experienced over this period. The survey shows a sharp drop in employment across all industries, apart from electricity, construction and services. Worryingly, more people without jobs will result in fewer people being able to save money.

‘The trade sector shed the largest number of jobs’

The Quarterly Decline

The trade sector shed the largest number of jobs, followed by transport‚ mining‚ manufacturing and business services. For the sixth quarter in a row, the mining sector lost jobs. This is due to high operating costs and low commodity prices putting strain on mining companies.
“The quarterly decline in the number of people employed in the trade industry was largely driven by declines in employee numbers in retail trade‚ and hotels and restaurants‚ which recorded declines of 27000 and 7000 respectively‚” said Stats SA.

‘Gross earnings in the formal sector dropped by R22 billion’

Every year, the trade sector usually loses jobs in the first quarter. This is because temporary jobs are created during the festive season and cut thereafter. In the first quarter of the year, gross earnings in the formal sector dropped by R22 billion to R523 billion, revealed the QES.

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