Why South Africa's job gains remain insufficient amid slow economic growth

STATISTICS South Africa's latest job growth figures, which showed a slower decline in the number of jobs lost in the formal sector, excluding the farming sector, is still uninspiring given the slow pace of economic growth, with key economic growth drivers losing ground.

- NICOLA MAWSON

When compared with the September period, jobs lost in the formal economy, excluding farming, declined 0.1% quarter-on-quarter when compared to the September period. Statistics South Africa said that the reason behind the flat figures in the three months to December was due to gains in sectors such as trade, business services, trans-port, and electricity.

However, the agency’s print noted that there were again declines in com-munity services, as well as the key sec-tors of manufacturing, construction and mining. Year-on-year, job losses were more pronounced, with a 0.8% decline in formal employment.

Dr Azar Jammine, director and chief economist at Econometrix, says that manufacturing production, a key output driver for economic growth, has been on a decline for years, with pro-duction down 15% in the past decade as the economy deindustrialises.