30 January 2006

South Africa's economy created 658 000 new jobs between September 2004 and September 2005, according to Statistics SA's latest Labour Force Survey.

This represents a marked increase of 5.7% to 12.3 million formal sector jobs following sluggish growth in previous years. The increase in the year to end September 2004 was only 1.9%, while over a longer period, from September 2001 to September 2005, job gains in the labour market were just over 1 million (1 120 000).

Despite this growth in employment, an increase in the country's economically active population meant South Africa's unemployment rate was virtually unchanged at 26.7% in September 2005, as against 26.2% in September 2004.

According to Stats SA, there was also an increase in the number of South Africans actively seeking employment, accompanied by a fall in the number of discouraged work-seekers (those not actively seeking jobs) from 3.9 million in September 2004 to 3.3 million in September 2005.

Stats SA's twice-yearly Labour Force Survey involves face-to-face interviews with members of over 30 000 households countrywide.

In the year to September 2005, formal agricultural employment continued a downward trend (down by 138 000 to 925 000 jobs), but this was more than offset by gains in trade (up by 482 000 new jobs to 3.024 million), finance (up by 148 000 to 1.296 million) and construction (up by 111 000 to 935 000).

South Africa's construction industry has increased its labour force by 54.5% since September 2002, when it only employed 602 000 people.

Stats SA's figures also show that South Africa's labour market becoming increasingly skills-oriented. Of the 1.12 million jobs created between September 2001 and September 2005, 28% were in the more skilled occupations.

South Africa's economy is currently in its 25th quarter of uninterrupted economic expansion, a record upturn that started in September 1999.

The government is busy fine-tuning and implementing a strategy to accelerate the country's growth rate and to make sure that this growth is accompanied by job creation.

SouthAfrica.info reporter

SA economy A stable political system, robust institutions, modern infrastructure, consistent growth rate, strong investment ratings ... and opportunities for Africa!

INDICATORS JSE: financial data, currency converter SARB: financial, economic data & info

SA's official statistics body produces a number of key indicators, including monthly inflation and quarterly GDP figures, unemployment and population counts.

ECONOMY UPDATE Business expectations remain positive Manufacturing output up 6.2% Retail sales increase Pension fund assets exceed R1-trillion Business confidence at record high Net reserves climb to $18.7bn Govt to spend R372bn on infrastructure Jan house price growth at 14.9% Interest rates unchanged Strong new vehicle sales Manufacturing hit by strong rand SA hotels boost occupancy levels Economic growth creating jobs Producer inflation rises Inflation dampens rate cut hopes