Stats SA links first quarter job losses to muted economic growth
Seventy-four thousand jobs have been lost in the first quarter of this year, compared to the final quarter of last year.
FILE: Job seekers wait on the side of a road holding placards showing their specialisation in Johannesburg, South Africa. Picture: MUJAHID SAFODIEN /AFP
JOHANNESBURG - Statistics South Africa (Stats SA) says the decline in employment can be linked to the muted growth of the economy.
Seventy-four thousand jobs have been lost in the first quarter of this year, compared to the final quarter of last year.
Trade alone accounted for 70% of the total losses, with 52,000 jobs cut.
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The loss of jobs in trade in the first quarter of the year is nothing new as retailers, restaurants and other establishments often bolster their workforce to meet the demands of the festive season, before laying workers off in the new year.
But Stats SA’s Solly Molayi says the overall drop in jobs is also not surprising.
"When the economy is growing and sectors are growing, chances are that there will be more of us employed in those particular sectors. I mean, look at trade – it only grew by 0.5% in quarter one according to the GDP [Gross Domestic Product], so it's not surprising when you see numbers from an employment side not growing."
The recent report also shows 55,000 losses in full-time jobs quarter on quarter.
During this time last year, 40,000 more full-time jobs were reported.