Non-agricultural formal employment decreases by a small margin in the second quarter

The number of employees in the formal non-agricultural sector of the South African economy decreased from an estimated

8 945 000 in March 2015 to an estimated 8 944 000 in June 2015.This reflected a quarterly decrease of 1 000 employees.

The quarterly decrease was mainly due to decreases in employment reported by manufacturing industry which shed
7 000 (-0,6%) jobs; followed by transport industry (-4 000 or -0,9%); business services industry (-3 000 or -0,2%); and construction industry (-2 000 or -0,4%).

There were increases reported by trade industry (8 000 or 0, 4%); and community, social and services industry (7 000
or 0,3%)

Mining and quarrying industry and electricity industry remained unchanged.

On a year-on-year basis formal sector employment declined by 161 000 jobs. This is an annual decrease of 1, 8 %. The largest decrease was recorded by the community, social and personal services industry with a decrease of 141 000
(-5, 3%) jobs. The decline in employment in the community sector was mostly caused by job losses from the national elections held in the same quarter of 2014.Construction recorded the second largest decline with 24 000 (-4, 76%) jobs.

On the contrary trade and business services recorded year on year increases of 6 000 (+0, 32%) and 13 000(+0, 68%) respectively.

Gross earnings paid to employees in the formal non-agricultural sector during the same quarter amounted to R479, 9 billion. This reflected a quarterly increase of R3, 8 billion (+0, 8%) compared with the quarter ended March 2015 and an annual increase of R32, 7 billion (+7, 3%) compared with the quarter ended June 2014.

The quarter-on-quarter increase in gross earnings was mainly due to increases of R5,3 billion (+3,5%) in the community, social and personal services industry ; R1,4 billion (+4,8%) in the transport industry; R979 million (+1,5%) in the wholesale and retail trade, repair of motor vehicles, motor cycles and personal and household goods, hotels and restaurants industry and  R606 million (+3,2%) in the construction industry

The QES survey also showed that an estimated monthly average of R16 796 was paid to employees in the formal non-agricultural sector during May 2015. This reflected a quarterly increase of 1, 8% between February 2015 and May 2015 and an annual increase of 6, 6% between May 2014 and May 2015.