IN a landscape marked by uncertainty and economic strain, South Africa’s formal non-agricultural sector has shown a modest glimmer of recovery in the final quarter of 2024.

According to the latest figures from the Quarterly Employment Statistics report released by Statistics South Africa (Stats SA), employment in this sector rose slightly by 12 000 jobs, bringing the total to 10.64 million by December 2024.

Despite this increment, it remains overshadowed by a troubling year-on-year decline of 91 000 jobs since December 2023.

Abigail Moyo, spokesperson of the trade union UASA, echoed these findings, stating: “The Quarterly Employment Statistics survey released by Stats SA shows that while the employment rate increased in the last quarter of 2024, the year-on-year figures between December 2023 and December 2024 show a gap between jobs gained and jobs lost.

“Employment in the formal non-agricultural sector increased by 12 000, or 0.1%, from September 2024 to December 2024, while employment decreased by 91 000 year-on-year. Full-time employment fell by 26 000, while part-time employment saw a sharper decline of 65%.”

The report highlighted that the trade industry had taken the lead in this modest recovery, adding 42 000 jobs. “Business services followed suit with 22 000 new positions.” However, not all sectors celebrated these gains; the community services industry faced the harshest realities, shedding 26 000 jobs, while both the construction and manufacturing sectors witnessed losses of 13 000 positions each.

Koketso Mano, FNB senior economist, provided deeper sectoral insights: “Job gains were recorded in trade (42 000 or 1.8% quarter on quarter), followed by business services (22 000 or 0.9%), transport (2 000 or 0.4%), and electricity (1 000 or 1.6%). Meanwhile, losses were recorded in community services (-26 000 or -0.9%), construction (-13,000 or -2.1%), manufacturing (-13,000 or -1%), and mining (-3,000 or -0.6%).”

Full-time employment, which saw an increase of 10 000 jobs, now sits at 9.487 million, yet this growth pales in comparison to the significant drop of 26 000 jobs compared to the same period last year. “This inconsistency in job growth reflects the ongoing challenges facing the labour market,” Stats SA noted.

Part-time employment also experienced a slight uptick of 2 000 jobs, now totalling 1.153m, largely driven by the trade industry, which contributed an impressive 18 000 part-time jobs. Yet, the overall trend paints a dire picture; year on year, the part-time workforce has declined by 65 000 positions, emphasising deep-rooted vulnerabilities within various sectors.

“Full-time jobs increased by 10 000 quarter on quarter but were 26 000 lower than a year ago. Most of the jobs added in business services and trade, as well as those lost in construction and manufacturing, were full-time jobs. Part-time employment increased by 2 000 jobs quarter on quarter but was down by 65 000 jobs compared to the fourth quarter of 2023,” the report stated.

The economic struggle extends beyond mere job numbers. Employee earnings reflected a disturbing disparity, even as total gross earnings increased by 6.1%, reaching R1.03 trillion. “The growth was primarily driven by higher earnings in key industries, but we must acknowledge the mining sector, which stands out for all the wrong reasons, seeing a decline in gross earnings by R910m,” the report stated.

Comparatively, basic salaries and wages climbed by 0.8% to R889.7 billion, yet the mining industry reported a fall in pay, a stark contrast to the prosperity reported in other sectors such as trade, manufacturing, and community services. “This division further highlights the differing economic roles and challenges faced by each industry,” the report elaborated.

One noteworthy development was the surge in bonus payments, which skyrocketed by R51.8bn, increasing an astonishing 85.4% quarter on quarter. “This dramatic rise indicates a temporary uplift in worker sentiment,” Stats SA pointed out. However, the same cannot be said for overtime payments, which saw a significant decline of 7.7%.

Despite the financial uplift, average monthly earnings experienced a slight quarterly dip, dropping by 0.2% from R28 274 in August to R28 231 in November. “The troubling trends in average earnings must be carefully monitored,” cautioned the report, underscoring the persistent economic headwinds faced by South African workers.

Michael Bagraim, DA Spokesperson on Employment and Labour, stressed the urgency of policy shifts: “Economic growth and job creation are the most critical and urgent priorities for South Africa. South Africa’s unemployment rate remains the highest in the world, highlighting the need for immediate action. The DA calls for pro-growth reforms including energy market liberalisation, small business support, and logistics improvements.”

He further said that the Quarterly Employment Survey for December 2024, reporting 91 000 fewer people being employed than in the previous year, showed that economic growth and the creation of jobs were now unquestionably the most critical and pressing imperative for the nation.

Moyo struck a cautiously hopeful tone: “The South African economy needs to absorb a decent chunk of unemployed citizens to reach its economic projections for growth and more jobs. Any form of job creation is crucial to our country and its future. We must work together to ensure that high unemployment rates are a thing of the past.”

While the recent figures from Stats SA suggest a slight recovery in the job market, the broader context reveals deep-seated challenges that cannot be overlooked. As South Africa grapples with a complex economic landscape, these statistics serve not just as numbers but as a clarion call for urgent action—demanding pro-growth policies, private-sector investment, and labour market reforms to secure a sustainable future for the country’s workforce.

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Job recovery mirage: 91 000 more unemployed as government failures deepen