Latest news with #QuarterlyEmploymentStatistics
IOL News
3 days ago
- Business
- IOL News
Urgent reforms needed as South Africa faces deepening unemployment crisis
South Africa's jobs crisis: 75,000 jobs lost in Q1 2025 Image: File The South African economy in bleeding jobs at an alarming rate and what was once a crisis is turning into a an unemployement emergency with experts warning of resultant civil instability. Nearly 75,000 formal sector jobs lost in the first quarter of 2025 alone, and 95,000 compared to the same time last year, according to Stats SA. Key sectors like trade, mining, construction, and community services were hardest hit, with only manufacturing showing slight growth. The figures have prompted alarm from economists, labour unions, and mental health experts, who warn that without urgent reform, the country faces entrenched unemployment and broader social fallout. Slow economic growth, policy uncertainty, skills mismatches, and restrictive labour regulations are all seen as major contributors. Abigail Moyo, spokesperson for the trade union UASA, said the latest figures are alarming. 'The Quarterly Employment Statistics reported by Stats SA indicate a contraction in employment, reversing the progress made towards the end of last year. Formal sector employment lost 74,000 jobs in the first quarter, and year-on-year data reveals that 95,000 jobs were lost between March 2024 and March 2025.' She added: 'The industries most affected include trade, community services, mining, electricity, construction, and business services. Only manufacturing showed slight growth, with a gain of 2,000 jobs.' Moyo warned that this will worsen already dire conditions for many workers. 'The current economic outlook is not encouraging and fails to inspire hope... This situation exacerbates the insecurity faced by workers who are already under pressure from high living costs. 'We cannot continue to operate on the brink of a failing economy without any prospects for a better future. We urge both the government and employers to collaborate with trade unions and other stakeholders to rebuild the labour market, focusing on decent work, fair wages, and sustainable employment.' Economist Ulricht Joubert pointed to a range of interlinked problems, beginning with poor economic growth. 'We had a growth rate in total of 0.6% last year compared to a growth in the population of one would guess around about 2%.' He warned that migration and an inflexible labour dispensation were worsening joblessness: 'There is still an influx of people from the rest of Africa into South Africa and that increases the availability of labour in South Africa. If we look at the labour dispensation, where the government tries to instruct and regulate who can be employed in South Africa, and that has a limiting effect. 'The economy never asks you, how old are you? What sex are you? What race are you? The economy only asks, are you capable of doing this specific job in such a way that it is competitive,. domestically and internationally.' He also criticised the cost pressures created by unions and minimum wage regulation: 'If we have to employ people at these minimum wages - Why should I employ a person when a machine can do the job? The productivity has declined from the time that the minimum wages have been imposed on the agricultural sector. 'We have to get the education and training system in South Africa on a footing where employers will say, oh, but you know, if we employ this person because of his qualifications, because of his training, we'll be able to do the job in a competitive way.' He further raised concern over low investment. 'Yes, it's at an unfortunate, very low level if we don't invest, then it creates a problem down the line. Government policies create an uncertain environment and because of that, especially international companies say, "but why? Why should I invest?' Economist Dawie Roodt was unequivocal in placing the blame on the ruling party. 'Why are we losing the jobs in the South African economy? Well, agriculture, is a very volatile sector, so it doesn't really tell us much. So don't look at agriculture, it's all over the place.' 'Manufacturing is much more important because manufacturing is an indicator of where we want economic growth, that's where we can create a relatively large number of jobs, and that is not growing. In fact, we are de-industrialising, we are losing our factories in South Africa.' 'And there's one reason and that's the ruling party. They are simply following the wrong macro-economic policies, and as long as they keep on doing that, the economy is not gonna grow, and as long as the economy is not growing, we're not gonna create jobs in the economy.' Roodt believes the focus needs to shift entirely. 'Actually, we should forget about job creation, and we should put all effort into growing the economy and jobs will look after themselves.' 'The underlying reason is just a government that's not doing what it's supposed to be doing and that's to create an environment that's conducive to economic growth. We certainly do not have that. That's the reason.' Professor Renata Schoeman, head of the MBA in Healthcare Leadership at Stellenbosch Business School, highlighted the emotional cost of rising unemployment. 'Seeing what's going on around them and being faced with colleagues losing their jobs, there is definitely an increase in disengagement.' 'People work harder and harder because they are so scared of losing their jobs, they do not actually take the necessary breaks.' 'The fallout of this additional stressor, the financial stresses, the sense of failure as a provider and especially if they are unsuccessful in finding employment again.' 'Make sure that you don't expect other people to do the work of two or three employees, you burn them out as well.' 'It is very difficult to keep focusing on mental health when someone is in survival strategy... that you do invest in the mental health of your employees.' 'It's just your ethical obligation in terms of leadership, take care of those remaining and those that's going.' Weekend Argus
The Citizen
25-06-2025
- Business
- The Citizen
Take-home pay slides for third month with grim job opportunities and earnings
Are you earning the average take-home pay of R17 296 and is it enough to cover all your expenses or are you affected when it decreases? The average take-home pay slowed for the third consecutive month in May, reflecting the impact of a subdued economic environment with stalled growth in the first quarter and a weakening global outlook, currently fuelled by the heightened volatility in the Middle East. According to the latest BankservAfrica Take-home Pay Index (BTPI), which tracks approximately 3.8 million salary earners in South Africa, the nominal average take-home pay decreased to R17 296 in May, 1.3% lower than the R17 532 registered in April, Shergeran Naidoo, BankservAfrica's head of stakeholder engagements, says. However, this figure remained significantly higher than the R15 903 recorded in May 2024. 'The upward trend in take-home pay from mid-2024 to early 2025 has been a positive development. However, recent months reflect a U-turn, with 2025 proving to be a volatile year so far, marked by multiple global shocks accompanied by a good dose of local challenges,' Elize Kruger, an independent economist, says. 'Downward revisions to global as well as local economic growth prospects have lowered confidence levels and put a pause on investment decisions, as investors and households hold back on their spending decisions. Together, these could hurt employment and earnings prospects of salary earners in the coming months.' ALSO READ: Capitec CEO tops banking pay charts — but how do staff salaries compare? A look at how SA's top five banks pay Quarterly Employment Statistics show average take-home pay of R28 289 According to the Quarterly Employment Statistics for the first quarter of 2025, the average monthly earnings paid to employees decreased by 0.1% from R28 316 in November 2024 to R28 289 in February 2025. According to the BTPI, take-home pay, adjusted for inflation, increased by 1.1% in May to R14 832 compared to R15 003 in April, but remained 5.8% higher than year-ago levels. 'The significant moderation in consumer inflation continues to have a positive impact on salary earners and their purchasing power, with the latest headline inflation figure for May 2025 at only 2.8%. 'However, the recent spike in international oil prices, due to the escalating conflict in the Middle East, could result in higher-than-expected headline inflation in the coming months and into 2026, Kruger says. She points out that the international Brent Crude Oil price increased to around $78/barrel after the US's attack on Iran's nuclear facilities, but talks about a ceasefire quickly triggering a reversal with oil prices dipping below $70/barrel again. 'Against expectations and despite the global volatility, the rand exchange rate remained notably resilient, providing a marginal offset of the higher oil prices on fuel price expectations. With the daily under-recovery at pumps running between R1.50/l for petrol grades and R2.70/l for diesel in recent days, it is clear that economic pain is on the radar for salary earners and the economy at large.' ALSO READ: Take-home pay increases significantly in 2024 Petrol increases coming that will affect take-home pay Kruger points out that petrol prices are forecast to increase by about R1/l and the prices for diesel by R1.30/l on 2 July, and further increases could be expected in August. 'These will push headline inflation upwards towards 5% by year-end, ahead of the 3.6% forecast for 2025. 'Concerningly, with the higher base calculation of 2025, the forecast average headline inflation for 2026 could be well above 4.5%, eroding the positive effects of lower inflation and likely triggering more conservatism from the South African Reserve Bank (Sarb). 'Any further monetary loosening looks unlikely at this stage, considering that the Middle East conflict is intensifying and the resultant negative impact on local fuel prices. Still, despite the negative developments outlined, 2025 is expected to be the second consecutive year of positive real take-home pay growth, supporting demand in the economy.' ALSO READ: Salary survey shows gap between increases and inflation narrowing Remchannel survey shows average salary increased by 5.82% in 2025 Meanwhile, the Remchannel Salary and Wage Movement Survey, a biannual report by Old Mutual published in April 2025, indicated that the average salary increased by 5.82% in 2025, compared to 6.09% in the previous year. Kruger says this trend suggests a more cautious approach by employers, who must also prioritise cost control amid a constrained economic environment. Interestingly, she says, the report revealed a reduced overall staff turnover rate of 13.5%, reflecting a market with fewer new job opportunities due to widespread downsizing by companies. She emphasises that this data confirms the financial pressures employees live with, as 39% of those who resigned were seeking better pay and career growth, while 31% left due to dissatisfaction with their current roles. 'With the local economy stalling in the first quarter and the weakening global backdrop adding to the downside scenario, the prospects of favourable earnings and employment opportunities have dimmed. ALSO READ: Salaries decreased by 2% in April, but higher than a year ago Policies must foster rather than deter employment in SA 'The latest Quarterly Employment Statistics survey released by Statistics SA indicated that total employment in the formal non-agricultural sector decreased by 74 000 in the first quarter of 2025, with employment falling from 10.65 million people in December 2024 to 10.58 million people by March 2025. 'According to the survey, 95 000 jobs were lost between March 2024 and March 2025. The Labour Force Survey, which also included the informal sector, agricultural sector and employment in households, echoed the pressure, showing that the unemployment rate ticked higher to 32.9% in the first quarter, with 291 000 job opportunities lost. 'The unemployment situation in South Africa remains a crisis and deserves to be one of the top priorities of government. It is imperative that government pushes forward on structural reforms across sectors such as energy and logistics. 'This could contribute towards solving our local predicaments, lifting the local economy's medium-term growth potential, but government must also ensure that policies and laws will foster rather than deter employment in South Africa.'
IOL News
25-06-2025
- Business
- IOL News
Fresh concerns over South African job market as employment drops
According to the Quarterly Employment Statistics (QES, Q1:2025) survey released by Statistics South Africa (Stats SA), total employment in the formal non-agricultural sector decreased by 74 000 (-0.7%) in the first quarter of 2025, with employment falling from 10.65 million in December 2024 to 10.58 million by March 2025. Image: Supplied The latest Quarterly Employment Statistics (QES) released by Statistics South Africa (Stats SA) for the quarter ended in March has raised significant concerns as the report reveals a downturn in employment figures, exacerbating fears about the health of South Africa's economy. According to the findings, a total of 74 000 jobs were lost in the first quarter of 2025, signalling a decrease of 0.7% from December 2024, where total employment stood at 10 653 000, dipping to 10 579 000 by March. The decline is largely attributed to substantial job losses in key sectors, including trade, which saw a steep reduction of 52 000 positions, and community services, which lost 17 000 jobs. The mining sector also contributed to this downturn, shedding 4 000 jobs, while business services, construction, and electricity reported minor losses. Notably, the transport industry remained static throughout this period, while manufacturing experienced a slight increase, gaining 2 000 jobs. Matthew Parks, spokesperson for the Congress of South African Trade Unions, they were concerned about the figures. 'Whilst there is normally an increase in jobs in the last quarter of each year as the festive season occurs and the retail and hospitality sectors experience a boom; this decrease in employment is nonetheless extremely worrying. The government must accelerate its efforts, working with business and labour, to rebuild the State,' Parks said. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Next Stay Close ✕ Stats SA also highlighted a year-on-year decrease, with total employment falling by 95 000 or 0.9% between March 2024 and March 2025. The report indicated that full-time employment specifically dropped by 55 000 or 0.6% quarter-on-quarter, painting a grim picture of the job landscape. Economists have responded similarly, with Lara Hodes from Investec noting the stark figures from the formal sector, where employment (excluding agriculture) fell by 0.7% on a quarter-on-quarter basis. "Quarter-on-quarter declines were logged in 6 of the 8 industries included in the survey, with the outcome indicative of a lacklustre economy. Economic growth rose marginally in the first quarter of the year as the economy continues to face a number of challenges, with weak business confidence, weighing on investment potential," Hodes said. Dr Elna Moolman, Standard Bank Group head of South Africa Macroeconomic Research, said that part of the weakness in the labour market was due to weakness in the economy this year. 'This stems from policy and political uncertainty both locally and globally. Unfortunately, this hardly improved in the second quarter and so the near-term numbers will remain weak," Moolman said. "We do however expect some economic growth in the second half of the year and that should lead to an improvement in the labour market.' Casey Sprake, economist at Anchor Capital, echoed the sentiments, saying the softness in the labour market mirrored broader economic stagnation amid persistently weak business confidence, policy uncertainty, and low fixed investment. 'Structural reforms, particularly those under the newly launched Operation Vulindlela II, must urgently gain traction if South Africa is to shift from stagnation to inclusive, job-rich growth,' she said. North-West University economics professor, Waldo Krugell, also said this mirrored what the economic growth numbers for the first quarter and the Quarterly Labour Force Survey. 'The economy hardly grew in the first quarter and the unemployment rate has increased. The QES confirms the job losses in the formal sector and the numbers are worrying," Krugell said. "I won't attribute too much of this to international uncertainty and the trade wars. This has more to do with slow growth due to a loss of business confidence and too slow domestic reform.'
IOL News
25-06-2025
- Business
- IOL News
Youth employment figures tell a different story of a hustling generation
Youth unemployment rates mask a generation of under-employed innovators Image: File As South Africa grapples with staggering employment statistics, the latest Q1 2025 Quarterly Employment Statistics (QES) from StatsSA paints a grim picture. Full-time employment decreased by 0.6% quarter-on-quarter, but the alarming 44.6% youth unemployment rate conveys only part of a much larger narrative. Emerging data, notably the newly released Gen Z Economy Report, indicates that this generation is not idle; they're thriving within an underemployment reality. Student Village, in collaboration with futurist and economist Bronwyn Williams of Flux Trends, recently released 'The Gen Z Economy Report: Cash, Culture and Clout,' shedding light on the dynamic activities of South Africa's young workforce. Rather than falling victim to the traditional labels of unemployment, young South Africans are tapping into their creativity and resourcefulness to redefine what it means to participate in the economy. 'Only 16.6% of Gen Zs identify as unemployed,' says Ronen Aires, CEO of Student Village. 'They are participating in the economy — just not in the conventional ways captured by official data.' Based on responses from over 900 South Africans aged 18 to 30, the report draws attention to a generation marked by financial pressures yet defined by impressive grit and determination. Instead of traditional job roles, today's youth are steering their careers in fresh directions. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Ad Loading From creators and freelancers to micro-entrepreneurs and influencers, they are blending learning with gig work to build diverse income streams, thus crafting economic agency in an environment that increasingly narrows traditional pathways. Yet, outdated metrics continue to label them as 'NEETs' (not in education, employment or training)—a narrative that is misleadingly simplistic. 'When data misses the nuance, policies and strategies do too,' Aires asserts. 'And when businesses, employers, and institutions rely on incomplete pictures, they risk missing out on one of the most agile and driven generations yet.' Key findings from the Gen Z Economy Report reveal: Side hustles are the main income source for 21.7%, followed closely by parental support (20%) and NSFAS grants (17.5%). Most Gen Zs earn below R5,000 per month, yet 90.5% are saving regularly, indicating a strong desire for financial security despite low income. Emergency savings (25.75%) and education (19.83%) dominate their saving habits, reflecting both uncertainty and aspiration. This generation prioritises financial independence, ethical values, and seeks personalised, digital-first experiences from businesses. Nearly 30% are exploring cryptocurrency and alternative investments, showing a cautious yet innovative approach to finance.
The Citizen
24-06-2025
- Business
- The Citizen
Top 10 stories of the day: City Power explains billing differences
Here's your daily news update for Tuesday, 24 June 2025: An easy-to-read selection of our top stories. News today includes City Power CEO Tshifularo Mashava has explained a phenomenon in which customers reload their prepaid electricity meters, only for the power utility to charge them a fixed fee of about 50% of their initial amount. Meanwhile, the economy shed jobs again in the first quarter of 2025, with unemployment also worse than a year ago, as employment decreased by 95 000 or -0.9% between March 2024 and March 2025, as full-time as well as part-time employment decreased. Furthermore, the new-look Springbok playing jersey for the 2025 season has been unveiled. Weather tomorrow: 25 June 2025 Residents of the Western Cape, Northern Cape and Free State must brace themselves for an intense cold front with possible heavy rainfall and light snowfall. Meanwhile, extremely high fire danger conditions are also forecast over places in the Northern Cape, and Free State, as well as the North West. Full weather forecast here. Stay up to date with The Citizen – More News, Your Way. City Power explains why it charges some customers more than others City Power CEO Tshifularo Mashava has explained a phenomenon in which customers reload their prepaid electricity meters, only for the power utility to charge them a fixed fee of about 50% of their initial amount. This comes amid complaints about the high cost of units beyond the R200 surcharge on prepaid electricity for residential customers, introduced last year. The Joburg council proposed increasing the prepaid electricity surcharge in May 2025. Picture: X/@RekordNewspaper Mashava explained in a media briefing on Tuesday why the power utility has been charging some customers more than others. CONTINUE READING: City Power explains why it charges some customers more than others Eastern Cape floods: Here's how much victims will be given to rebuild their homes The national Department of Cooperative Governance and Traditional Affairs (Cogta) says funds for building materials will be provided to residents whose homes were damaged during the recent devastating floods in the Eastern Cape. The floods, which struck various areas in the province earlier this month, claimed the lives of at least 100 people and displaced many families. Flooded roads after heavy rains fell in Gqeberha on 10 June 2025. Picture: Gallo Images/Lulama Zenzile A national state of disaster was declared in response to the widespread destruction. CONTINUE READING: Eastern Cape floods: Here's how much victims will be given to rebuild their homes Economy sheds jobs again in first quarter, unemployment worse than year ago The economy shed jobs again in the first quarter of 2025, with unemployment also worse than a year ago, as employment decreased by 95 000 or -0.9% between March 2024 and March 2025, as full-time as well as part-time employment decreased. According to Statistics SA, its Quarterly Employment Statistics for the first quarter of the year show that total employment decreased by 74 000 or -0.7% compared to the fourth quarter of 2024, from 10 653 000 in December 2024 to 10 579 000 in March 2025. Picture: iStock This was due to decreases in trade that shed 52 000 jobs (-2.2%), community services that shed 17 000 jobs (0.6%), mining that shed 4 000 jobs (-0.9%), business services that shed 1 000 jobs (0.0%), construction that also shed 1 000 jobs (-0.2%) and electricity that also shed 1 000 jobs (-1.6%). CONTINUE READING: Economy sheds jobs again in first quarter, unemployment worse than year ago Shivambu-MK spat: 'I am willing to take a drug test,' says Nhlamulo Ndhlela Umkhonto weSizwe (MK) party spokesperson Nhlamulo Ndhlela says he is willing to take a drug test to prove that he is not a drug addict. This comes after the party's former secretary-general, Floyd Shivambu, told eNCA on Monday that Ndhlela is always high on drugs and alcohol. uMkhonto weSizwe (MK) party national spokesperson Nhlamulo Ndhlela. Picture: X Shivambu also described Ndhlela as a 'scoundrel', a 'fool' and an 'imbecile' who is part of the people who are leading a smear campaign against him. CONTINUE READING: Shivambu-MK spat: 'I am willing to take a drug test,' says Nhlamulo Ndhlela PICTURES: New-look Bok jerseys unveiled, including special '95 edition The new-look Springbok playing jersey for the 2025 season has been unveiled. And, for hard-core Bok fans, apparel partner Nike have released a jersey commemorating the 30th anniversary of the Springboks winning the 1995 Rugby World Cup. Jesse Kriel during a recent Bok training session. Picture: Daniel Hlongwane/Gallo Images The release of a heritage jersey recreates the one worn by the Boks in the 15-12 victory over New Zealand at Ellis Park in 1995, while the new team playing jersey incorporates elements of the King Protea in a striking collar design. CONTINUE READING: PICTURES: New-look Bok jerseys unveiled, including special '95 edition Here are five more stories of the day: Yesterday's News recap READ HERE: 24-year-olds in debt | Ramaphosa calls for Israel-Iran dialogue | Get to know Pirates' new coach
