Job losses in manufacturing, transport, construction
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Job losses in the manufacturing, transport and construction sectors respectively led to the unemployment rate in South Africa rising to 35.3% in the fourth quarter of 2021.
This is up from 34.9% in the third quarter.
North West University Economics Professor, Waldo Krugell [https://news.nwu.ac.za/experts/waldo-krugell], says the 397 000 jobs lost were countered by the 262 000 jobs created by the private household, community and social services, trade, agriculture, mining as well as the finance sectors.
The expanded jobless rate, which includes discouraged workers not seeking employment, rose to 46.2%.
Also Read: NW government reportedly spent millions on SMMEs [https://www.ofm.co.za/article/centralsa/313911/nw-government-reportedly-spent-millions-on-smmes]
Krugell says the short-term causes behind the job losses in the manufacturing and construction sectors were loadshedding as well as the steel and engineering strike seen towards the end of the 2021.
The long-term causes are somewhat different. Government’s inability to spend money on big construction projects owing to a constrained fiscus has led to this sector finding itself in tough times from a long-term perspective.
With respect to manufacturing, increasing global competition and the dawn of the Fourth Industrial Revolution have seen this industry continue to decline.
This is up from 34.9% in the third quarter.
North West University Economics Professor, Waldo Krugell [https://news.nwu.ac.za/experts/waldo-krugell], says the 397 000 jobs lost were countered by the 262 000 jobs created by the private household, community and social services, trade, agriculture, mining as well as the finance sectors.
The expanded jobless rate, which includes discouraged workers not seeking employment, rose to 46.2%.
Also Read: NW government reportedly spent millions on SMMEs [https://www.ofm.co.za/article/centralsa/313911/nw-government-reportedly-spent-millions-on-smmes]
Krugell says the short-term causes behind the job losses in the manufacturing and construction sectors were loadshedding as well as the steel and engineering strike seen towards the end of the 2021.
The long-term causes are somewhat different. Government’s inability to spend money on big construction projects owing to a constrained fiscus has led to this sector finding itself in tough times from a long-term perspective.
With respect to manufacturing, increasing global competition and the dawn of the Fourth Industrial Revolution have seen this industry continue to decline.
