Employment in the formal nonagricutural sector increased by 16 000 persons, or 0.2%, quarter-on-quarter, during the three months ended September 30, to an estimated 8.45-million employees, Statistics South Africa (Stats SA) has found.

On a year-on-year basis, employment in the quarter also increased by 0.2%, or 14 000 employees.

“Contributing to the employment increase in the third quarter were job gains in the wholesale, retail, motor vehicles and hotels and restaurants industry, where employment grew by 7 000 employees; the financial intermediation and business services industry, where employment grew by 3 000 persons, and the community and social services industry, which saw an addition of 15 000 employees,” banking group Investec commented.

However, the mining and quarrying industry reported a year-on-year decrease of 13 000 employees and a quarter-on-quarter decrease of 6 000 employees, while the manufacturing sector’s employment decreased by 0.6% year-on-year and 0.1% quarter-on-quarter.

“This [decrease in manufacturing industry employment] was mainly owing to decreases in employment in the production, processing and preservation of meat, fish, fruit, vegetables, oils and fats [and the] manufacture of furniture,” Stats SA said.

The construction industry also registered a decrease in employment during the three months ended September, while the electricity, gas and water supply industry reported no change year-on-year.

“The quarterly employment survey confirms that gains in employment were not broad-based across all sectors. In essence, the service sector of the economy added jobs, while employment in the production side decreased,” Investec said, adding that prospects for sustained and meaningful job creation would remain restricted by the weak nature of economic growth, with gross domestic product still at risk of falling short of official forecasts of 1.9% to 2% this year.

“Moreover, business confidence remains suppressed, suggesting that there will continue to be a reluctance to expand the workforce,” Investec said.

Meanwhile, gross earnings paid to employees during the quarter amounted to R397.68-billion, reflecting a quarterly increase of R12.92-million, or 3.4%, and a yearly increase of 6.9%.

Stats SA further stated that average monthly earnings, including bonuses and overtime payments to employees in the formal nonagricultural sector increased between May and August.

“The September 2013 Quarterly Employment Statistics survey reflects a quarterly increase of 1.9% in average monthly earnings paid to employees in the formal nonagricultural sector between May, when an estimated R14 506 was paid, and August, when an estimated R14 785 was paid,” Stats SA said. 

However, Investec pointed out that, while average monthly earnings in the formal sector rose by 1.9% quarter-on-quarter, and by 5.8% year-on-year, in the third quarter of 2013 in nominal terms, in real terms, the quarter-on-quarter increase was far more moderate at 0.3%, and in annual terms growth contracted by 0.6% year-on-year to R7 028.

Sectors which registered earnings in excess of the formal sector average, were mining at R16 743, electricity at R28 263, transport at R18 743, financial intermediation at R15 331 and community at R17 592, Investec said. 

“The strongest annual growth in nominal earnings occurred in the mining industry at 12% year-on-year, while the lowest, below-average nominal earnings growth, was registered in the wholesale and retail sector at R9 944,” it added.