South Africa's unemployment rate dropped by 1.7 percentage points in the six months to September 2004, an indication that the economy's strong performance is beginning to translate into job creation.

The latest labour force survey, released by Statistics South Africa on Thursday, showed a drop in the unemployment rate from 27.9% in the six months to March 2004 to 26.2% in September, with a gain of 251 000 jobs.

• Labour Force Survey, September 2004

Gauteng continued to be the biggest employer among SA's provinces, with KwaZulu-Natal second, while the Western Cape showed a slight decrease in employment due to drought.

The biggest gains over the six-month period were in the construction and trade sectors. Mining, hit by the strong rand, and agriculture, hit by drought, both suffered decreases in employment.

In a separate survey of employment and earnings, focusing on the demand side of the labour market, Statistics SA reported a 1.3% increase in employment in the formal non-agricultural sector in the fourth quarter of 2004, following on a 1.7% increase in the third quarter.

SouthAfrica.info reporter

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	Labour Force Survey, Sept 2004  Statistics South Africa