September 29, 2004

By Mokgadi Pela

Johannesburg - A total of 332 000 jobs were created in the six months between September 2003 and March 2004, but the unemployment rate remained constant, results of the Labour Force Survey released in Pretoria showed yesterday.

The expanded unemployment rate, which does not require active job search by the unemployed, was 41.2 percent in March 2004 and 42 percent in September 2003.

Ros Hirschowitz, Statistics SA's deputy director-general, said: "The message from this research is that employment is stabilising and may be increasing in the formal sector.

"On the other hand, unemployment has stabilised and may be decreasing. But we need more data points to confirm this." The survey showed that the number of unemployed people - at 4.6 million in March 2004 - was virtually unchanged compared with September 2003.

Hirschowitz said 11 984 000 people were employed in March 2004 compared with 11 652 000 in September 2003. According to Stats SA, the jobless rate fell to 27.8 percent from 28.4 percent in September 2003.
The study said although the decrease was not "statistically significant", it could indicate that the unemployment rate was stabilising.

The research surveyed 30 000 households in the country, with participants ranging between the 15 and 65 age groups.

The study of employment and earnings showed that the number of jobs in the formal non-agricultural business sector rose by 83 000 between March 2004 and June 2004.

The figure stood at 6 448 000 in March 2004 and went up to 6 531 000 in June 2004.

Sagaren Pillay, employment statistics manager, said: "The increase may be due to a rise in employment reported by the community, social and personal services industry, the wholesale and retail trade, insurance, real estate, the mining and quarrying industry."

Standard Bank said: "The level of economic growth over the last four years has not been at levels that encourage employment creation. "Gross domestic product since 2000 has averaged 3 percent per annum, while employment levels have fallen by an average of 1 percent over the same period. Employment in the primary sectors recorded slow growth, while gradual increases in the manufacturing and business services and community services sectors were recorded."

Chez Milani, the Federation of Unions of SA's general secretary, said: "We see unemployment being above 40 percent and this is worrying for the country. Definitions mean nothing for a man and woman in the street. Many people have given up looking for work because they are not finding jobs."