Statistics contained in the SA Reserve Bank Quarterly Bulletin show the upward trend in unemployment, an issue which has plagued the SA economy in the past few years. The Bank says total employment in the formal non-agricultural sector fell between the fourth quarter of 1997 and the end of the third quarter of 1998. Employment fell both in the private and public sector, the Bank says. The steepest declines were in the mining sector which was badly hit by the drops in international commodity prices. This decline is in line with the deteriorating fortunes of the industry in the SA economy, which has seen hundreds of thousands of jobs lost in the past few years.
Most analyst expect the sector to continue to shed jobs.
The only bonus is that government's pledges to reduce its bloated civil service appear to be paying off. The bank says the declines are a result of efforts to raise efficiency levels in the civil service which have gathered new momentum. The high unemployment rates continue to be a major Achilles heel of the SA economy and the inability to create new jobs in sufficient numbers is a major concern both to business and government. Last year government, business and labour joined hands at the presidential jobs summit with a view of finding ways to creating jobs. These programmes will by design yield jobs of a short-term nature while, it is hoped, the structural changes which have been implemented will lead to sustainable jobs.