The number of people employed in the formal nonagricultural sector of the South African economy increased by about 9 000 persons, or 0.1%, from December last year to an estimated 8.5-million employees in March, Statistics South Africa’s (Stats SA’s) latest Quarterly Employment Statistics (QES) survey has revealed.

The quarter-on-quarter increase was mainly owning to a 2.1%, or 50 000, increase in community services employees, and relatively modest increases in the finance and construction sectors, which gained 7 000 and 5 000 employees respectively.

Employment declined in every other industry, with the trade and mining sectors recording the greatest declines in employment of 34 000 and 13 000 respectively.

Meanwhile, year-on-year, the latest employment figures reflected an increase of 42 000 persons, or 0.5%.

The mining industry suffered the largest employment losses year-on-year in March 2014, with employment in the sector having declined by 5.6% or 29 000 employees, while the community services industry, with an increase of 65 000 employees, gained the most jobs year-on-year.

BNP Paribas economist Jeffrey Schultz commented that the fact that the public sector continued to be the main impetus behind overall employment growth in the economy was worrying and not sustainable.

“The government’s commitment to expenditure ceilings and the need to rein in the public sector wage bill, according to its national budget in February earlier this year, supports this view,” he said.

He further stated that the consistent weakness displayed in private sector labour market trends remained a concern, adding that it would no doubt lead to increased pressures by the new government to step up socioeconomic reform in an economy with an unemployment rate of more than 25% and youth unemployment of more than 50%.

“While the recent wage settlement in the platinum mining sector is encouraging, we are of the view that restructuring of the sector is imminent. This suggests further labour market pain in the mining industry in months to come.

“Suggestions that the steel and engineering sector is now also likely to embark on a strike from early next week also leaves us with little encouragement for near-to-medium term manufacturing employment prospects,” he said.

Meanwhile, gross earnings paid to employees in the formal nonagricultural sector declined by 4.6% quarter-on-quarter, to R403.84-billion, during the three months ended March, Stats SA said.

Year-on-year, however, earnings increased by R26.46-billion, or 7%.

However, the average monthly earnings, including bonuses and overtime payments, paid to employees in the formal nonagricultural sector decreased by 1.4% between November 2013 and February 2014, Stats SA said.