Formal employment sector grows by 0.2% in 2016-2017

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Employment creation was flat between 2016 and 2017.  The formal sector employment grew only 0.2% during the time. This is according to the Statistics South Africa Labour Market Dynamics in South Africa report for 2016.

This is indicative of the tough economic climate and persistently high unemployment levels. Employment in the formal sector increased by 81 000 in the fourth quarter compared to the third quarter.

This was largely due to jobs created in the business services, government and the manufacturing sectors. There were more job losses in the construction, mining and transport sectors in the quarter.

Economist Mike Schussler says there is a big difference between the number of adults entering the job market and the number of jobs that get created.

On a year on year basis, the more productive sectors of the economy shed jobs. The highest was construction, followed by mining and manufacturing sector.

The struggling mining sector has an impact on the other sectors downstream. The report shows that employment levels increased by 2 million between 2010 and 2016.

During the same period, the unemployment rate increased. The report shows the employed also accounted for the largest share amongst the white population group at 63% compared to 40% amongst black Africans.

Unemployment is impacting the less educated more than those with tertiary education.