Employment in formal sector falls by 1.8% in 4th quarter of 2023

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Data released by Stats SA shows that employment in the formal sector for the fourth quarter of 2023 fell by 1.8 percent or nearly 200 000 jobs.

The decline was mainly due to fewer jobs in community services, construction, business services, manufacturing and mining.

However, there were increases in trade, transport, mining and electricity. Salaries paid to employees increased in the fourth quarter by almost one percent due to higher earnings in trade, manufacturing and construction amongst others.

Senior economist at FNB, Koketso Mano, “Many of these jobs that were lost in community services which would have been in line with phase 4 of the Presidential Youth Employment Initiative having come to an end in the third quarter of 2023. However, it is still important to note that we do have 98 000 jobs that have been added since the end of 2022 and also with Stats SA’s latest updated sample. We are seeing that employment in the formal sectors of the economy has fully recovered by 400 000 jobs when compared to the fourth quarter of 2019. ”