Eastern Cape employment figures 'disappointing'

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A jobless protester holds a placard during a 2009 march in the Ramaphosa squatter settlement, east of Johannesburg A jobless protester holds a placard during a 2009 march in the Ramaphosa squatter settlement, east of Johannesburg

The fact that employment in the Eastern Cape has dropped by 46 000 year-on-year (y/y) in the first quarter of 2012 to 1 279 000, is devastating news for the province.

The decline of 3.5% was the highest of all the nine provinces and in contrast to the picture nationally where employment increased y/y by 2.3%, according to statistics released by Statistics SA.

Quarter-on-quarter, the number of people employed in the Eastern Cape declined by 47 000.

The unemployment rate in the Eastern Cape rose from 26.9% in the first quarter of 2011 to 27.1% in the fourth quarter and 28.3% in the first quarter of 2012.

The number of “discouraged work seekers” – those who have effectively given up hope of securing employment rose from 368 000 in the first quarter of 2011 to 399 000 in the same period in 2012.

The figures, released by Statistics South Africa this morning, show that there were major declines in the number of people employed in the Eastern Cape in the agricultural and manufacturing sectors as well as those who worked in private households.

Year-on-year, employment in the agricultural sector dropped by 17 000 (26.6%) from 64 000 to 47 000 while ion the manufacturing sector there was a decrease of 13.7% or 25 000 from 183 000 to 158 000.

Employment in private households dropped by 45 000 (32.4%) from 139 000 to 94 000.

The construction industry shed 12 000 jobs, while trade gained 32 000, transport 18 000 and community and social services 3 000.

Nationally, StatsSA said employment had expanded by 304 000 on annual basis during the first quarter of this year

It said this was “the third successive quarter in which a significant growth on a year-to-year basis was observed.

“The robust employment growth over the last two quarters on an annual basis implies that the economy has created 447 000 jobs since the trough or lowest level in the number of employed per-sons in Q3:2010, a recovery of close on half a million of the jobs lost between the 4th quarter of 2008 and 3rd quarter of 2010.”

 


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