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Labour trends in SA

29 September, 2004

A study released by official statistics body Statistics SA shows that the formal sector is the majority employer in South Africa – a trend which analysts say has been on the cards since 2000.

The Labour force survey shows that across all population groups the majority of workers were employed in the formal sector and a relatively small proportion was employed as domestic workers.

Overall 8.8-million people are employed in the formal sector, about 2.2 million people in the informal sector, and 1-million in domestic work.

  • Read the Labour force survey

    Analysts say since 2000, the formal sector has been responsible for most of the jobs created in the country – and employment in the informal sector has in fact been stagnant or declining. This is in contrast to the 1990s, where the informal sector was the primary job creator.

    The percentage of people employed in the formal sector is lowest amongst blacks (64.6%) and coloured (85.6%) workers, and highest among Indian/Asian (93.8%) and white (94.4%) workers.

    Similarly, the survey shows that informal sector employment is highest among the black population group (23.8%) and lowest among the Indian/Asian (5.8%) and white (5.3%) population groups.

    The percentage of black people employed as domestic workers is 11.1% and of coloured workers 7%. This can be compared to only 0.1% of the Indian/Asian and white population groups.

    The survey shows that the largest group of people employed in the formal sector work in the community, social and personal services industry (24.1%), whereas in the informal sector the largest group work in trade (39.6%).

    Approximately 15.5% of the people working in the informal sector are employed in agriculture, making the agricultural industry the second largest industry in terms of informal sector employment.

    In contrast, only 10.6% of those working in the formal sector are employed in agriculture, making this industry the fifth largest in terms of formal sector employment.

    According to StatsSA, most of the employed are working in elementary occupations excluding domestic work (about 2.7-million people), followed by craft and related trades workers (about 1.5-million people) and then service workers (about 1.4-million people).

    The occupational group with the least number of workers is skilled agricultural and fishery workers (approximately 0.3-million people). Skilled agricultural workers include skilled field crop and vegetable growers; gardeners, horticultural and nursery growers; dairy and livestock producers; poultry producers; and forestry workers and loggers; while unskilled farm labourers fall in the elementary occupations group.

    SouthAfrica.info reporter

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  • Agriculture is the second largest industry in terms of informal sector employment. (Photos: Dept of Trade & Industry)

  • Unemployment balancing act
  • Wage hikes for farmworkers
  • R18m for ECape skills training
  • R135m boost for skills training
  • Govt pressures Setas to deliver
  • Wage rise for domestic workers
  • Farming out jobs in E Cape
  • Skills training projects on course
  • You & your domestic/ 'madam'
  • Workers help others find work
  • Trade unions in South Africa
  • Regulating labour relations
  • South Africa's labour market
  •  Stats SA


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