As South Africans continue to grapple with rising living costs and salary increases that are not keeping up with inflation, the spotlight will be on the latest unemployment rate when the Quarterly Labour Force Survey (QLFS) for Q3 2023 is released on Tuesday.
The country’s official unemployment rate currently stands at 32.6 percent, with 154,000 more people finding work in Q2 2023 compared to Q1 2023; the number of unemployed people also decreased by 11,000 from the previous quarter.
The results of the previous QLFS, which covers the labour market activities of people in the country aged 15 to 64, showed that the construction sector recorded the largest increase in employment with 104,000 more jobs.
Job increases were recorded in the following sectors:
- Trade: 92,000
- Community and social services: 63,000
- Private households: 37,000
- Mining: 31,000
- Agriculture: 7,000
These sectors recorded job losses:
- Manufacturing: 96,000
- Finance: 68,000
- Transport: 7,000
- Utilities (electricity, gas, water supply): 6,000
Compared to Q2 2022, 73,000 more people in South Africa had jobs, with 16 million people in the country employed in Q2 2023.
While South Africans will be hoping that the rate of employment improved in the July to August period – just as it did from Q1 to Q2 2023, albeit by only 0.3 percent, one needs to bear in mind that Stats SA’s Quarterly Employment Statistics (QES) for Q2 showed an increase in the number of jobs but a drop in the number of full-time employees.
This survey data showed that, year-on-year, the number of full-time workers dropped by 46,000, with sectors that experienced a decrease including community services, manufacturing, construction, and transport. Part-time employment, however, went up by 150,000 from June 2022 to June 2023.
Key differences between the QLFS and QES
Stats SA conducts two official sources of employment statistics surveys – the QES, which is establishment-based, and the QLFS, which is household-based. Each survey has its strengths and limitations.
For example, QES cannot provide information on the description of employed people, such as demographic profile, education level, and hours, nor unemployment and descriptors of the unemployed. QLFS is a survey of households that collects information from approximately 30,000 dwelling units and data on the labour market activities of individuals.
Why is the QLFS important to South Africans?
The QLFS is an important economic indicator for South Africa and provides crucial information about the country's labour market:
– It reveals the unemployment rate, a key indicator of economic health as high levels of unemployment can indicate economic challenges and social issues.
– Using the data, policymakers, economists, and businesses can identify trends in employment and understand changes in the labour market over time. This helps them make informed decisions about economic policies and business strategies.
- Demographic information such as age, gender, and education levels of the workforce is valuable for understanding the composition of the labour force and addressing issues related to equity and diversity.
- Insights into informal employment help policymakers understand the dynamics of this significant sector in the South African economy and formulate policies to support informal workers.
- The survey includes information about wages and earnings, allowing for an analysis of wage trends. This is important for assessing the standard of living and income inequality in the country.
- Governments and other stakeholders use QLFS data to formulate and adjust labour market policies.
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