“The survey shows that the number of people employed in the formal non-agricultural sector of the South African economy increased by about 59 000 persons (+0,7%) from June 2011 (an estimated 8 300 000 employees) to September 2011 (an estimated 8 359 000 employees),” said Stats SA in its Quarterly Employment Statistics survey.
The survey is a quarterly survey covering a number of private and public enterprises in the formal non-agricultural sector of the South African economy. The information received is used to estimate employment and gross earnings that are used as inputs to the Gross Domestic Product (GDP) among others.
Between the quarters ended June 2011 and September 2011, gross earnings paid to employees in the formal non-agricultural sector increased. Gross earnings paid to employees during the quarter ended September 2011 amounted to R339 951 million. “This reflects a quarterly increase of R16 305 million compared with the quarter ended June 2011,” said the report.
Gross earnings paid to employees in the formal non-agricultural sector increased between the quarters ended September 2010 and September 2011.
“The gross earnings paid to employees during the quarter ended September 2011 amounted to R339 951 million. This reflects an annual increase of R34 742 million compared with the quarter ended September 2010.”
In 2010, Finance Minister Pravin Gordhan said South Africa’s GDP needed a growth of 7% in order to transform the economy.
Standard Bank said in a research note that the data was good news for job growth.
“However, some sectors are still battling to normalise their workforce in the face of challenging economic times. In addition, the labour market’s lagging indicator characteristics suggest that a meaningful revival in the market is still some way off,” it said.
Standard Bank said while the Reserve Bank is likely to keep its current monetary policy in 2012 there is credible argument for further rate cuts since third quarter GDP figures “confirmed the significant drop in economic momentum from the second quarter.”
In the third quarter, South Africa’s GDP came in lower than expected, increasing by 1,4%.