Despite the dwindling employment rate in the country, report shows that the number of employed south Africans in the formal sector have increased by 43‚000 quarter-on-quarter‚ from 8‚949‚000 in September last year to 8‚992‚000 in December.
This was revealed by Statistics SA’s latest quarterly employment statistics. The body stated that the recent increase was centered on increases in trade (42‚000 or 2‚3%); business services (16‚000 or 0‚8%); and community services (13‚000 or 0‚5%).
The report shows that gross earnings paid to employees increased by R31‚147-million (6‚3%) from R495‚579-million in September 2015 to R526‚726-million in December last year.
It went further to mention industries which had witnessed decrease. They include: mining and quarrying (-14‚000); construction (-8‚000); manufacturing (-4‚000) and transport (-2‚000).
“The increase was mainly due to increases in the electricity‚ construction‚ manufacturing‚ trade‚ business services‚ transport‚ community services and mining and quarrying industries. Year-on-year‚ gross earnings increased by R29‚446-million or 5.9%” it said.
Average monthly earnings revealed a 0‚7% quarter-on-quarter increase on average monthly earnings paid to employees in the formal non-agricultural sector from R17‚392 in August last year to R17‚517 in November.
On an annual basis‚ average monthly earnings paid to employees also had 6,7%increase from the R16‚424 we had in November 2014 to R17‚517 in November last year.
However, South Africa’s rate of entrepreneurial activity has slowed down compared to its what is obtainable in other developing nation and merely a quarter of what is seen in other sub-Saharan African countries.
Despite the decrease in unemployment, the number of people starting businesses due to having no other option for work (necessity entrepreneurship) is reported to be low.
Looking at the 2014 Global Entrepreneur Monitor Report, increase was made in women’s entrepreneurship primarily due to government support, but the perception of opportunities to start a business, and confidence in one’s own abilities to do so, remains alarmingly low compared to other sub-Saharan African countries.
The report blamed the challenge to improvement on important issues such as poor education qualification, corruption, regulatory requirements and lots more. We hope to see these key areas squarely tackled in order to ensure better growth of our employment rate with greater number of employed South Africans by the end of 2016.