67 000 jobs were lost in the second quarter, a decrease of 0.7% compared to March 2016. The job losses, reported by Stats SA are in the formal non-agricultural sector.

Quarterly employment losses were observed in all industries except electricity and construction.

Among others, the manufacturing industry reported a loss of 7 000 jobs, transport and communications a further 7 000, trade 4 000 and mining and quarrying a loss of 1 000.

However there was an annual job gains of 30 000 (+0.3%) between the second quarter of 2016 and the same quarter of the previous year. Employment gains of 1000 were reported in the construction industry while the electricity industry remained unchanged.

 

Manufacturing

The loss of 7 000 employees in the manufacturing sector follows a revised decrease of 6 000 employees in the March 2016 quarter. There was an annual decrease of 16 000 employees in June 2016 compared with June 2015.

 

Mining

The mining industry continued to decline in the second quarter of 2016 by 1 000 employees, marking this as the eighth consecutive quarter decline observed since fourth quarter 2014. Year-on-year the sector continues to lose jobs, the sector shed 32 000 jobs in June 2016 compared to June 2015.

 

Cosatu condemns job losses

The Congress for South African Trade Unions (Cosatu) has slammed government for the losses, stating that “this is proves that our feckless and uninspired government is out of its depth ,and that our private sector that has confessed that it is hoarding about R600 billion simply does not care.”

The trade union stated that the “progressive policies of the ANC have been abandoned and replaced by policies that pander to big business and ratings agencies. The Alliance’s decision for the overhaul of the economic and labour market chapter of the national development has been ignored. All of this contributes to the building and consolidation of a standing army of angry, desperate and unemployed citizens, with no hope or trust in government anymore.”

The follows a national strike by Cosatu member last week on the International Day for Decent Work, calling for decent work and pay.

 

Gross earnings and average monthly earnings

According to Stats SA, gross earnings increased by 0.01% in June 2016 compared with March 2016. The total increase in earnings amounted to R32 million quarter-to-quarter. There was an annual increase of R31 billion (6.3%) in June 2016 compared with the same quarter of the previous year.

The changes in gross earnings in all industries were due to base effects which arose due to cost-of-living adjustments, bonus payments and overtime payments paid.

There was a quarter-on-quarter increase of 3.7% in average monthly earnings paid to employees in the formal non-agricultural sector from R17 396 in February 2016 to R18 045 in May 2016.

On an annual basis, average monthly earnings paid to employees increased by 7.5% from R16 787 in May 2015 to R18 045 in May 2016.