Data from the Quarterly Labour Force Survey (QLFS), for the second quarter of 2024, show that Durban’s labour market experienced a marginal contraction when compared with the previous quarter. The number of employed decreased by 20,700, reflecting job losses, while the number of unemployed increased by 14,900. These labour market dynamics contributed to a 1.0% increase in the unemployment rate, which now stands at 23.0%.
The number of discouraged work-seekers increased by 4,500, while the not economically active individuals grew by 16,200. The labour force saw a reduction of 5,800 individuals, which indicates some level of disengagement from the labour market, resulting in a 0.4% decline in labour force participation rate during this period.
Additionally, the job losses experienced this quarter led to a 1.0% decrease in the absorption rate, reflecting that fewer individuals are finding employment relative to the labour force.
Source: StatsSAQuarterly Labour Force Survey, 2024
The unemployment rate rose by 2.3% from 20,7% in 2023Q2 to 23.0% in 2024Q2, translating to an additional52,400 unemployed individuals. The number of employed individuals grew by21,000 during this period.
Meanwhile, the number of discouraged work-seekers increased by 7,600, and there was a reduction of31,900 in the number of not economically active individuals. The labour force expanded by 73,400 individuals due to a reduction in the number of not economically active individuals who are now actively seeking employment. This expansion resulted in a 1.9% increase in the labour force participation rate.
The absorption rate remained unchanged, indicating that even though the labour force has expanded, the market's capacity to absorb workers has remained steady over the year.
The quarter-on-quarter change in employment decreased by 20,700 in the second quarter of 2024, a stark contrast to the 9,000 increases in jobs observed in the previous quarter. Positive employment growth was noted in the community services sector, which added 15,200 jobs, followed by manufacturing sector with8,000 jobs, agriculture sector with 6,100 jobs, construction sector with around1,800 jobs, and private households sector with 1,300 jobs.
In contrast, the electricity sector saw a slight decrease of 400 jobs, the trade sector experienced a decline of 8,000 jobs, and finance sector a significant loss of around 19,500jobs. The most substantial decline occurred in the transport sector, which shed25,200 jobs due to challenges in logistics. The mining sector, along with other sectors, remained unchanged.
The year-on-year change in employment increased by21,000 in the second quarter of 2024. The changes revealed both significant growth and notable declines across sectors. The Manufacturing sector led with a substantial increase of 32,900jobs, followed by private households sector with 11,800 jobs and finance with7,900 jobs. The construction sector added 6,500 jobs, while agriculture sector saw a modest increase of 600 jobs, and the electricity sector gained 400 jobs.
Conversely, the transport sector lost 9,800 jobs, trade sector shedding 11,800 jobs, and community services sector saw the largest reduction, with a loss of 17,600 jobs. There were no changes in employment in the mining sector and other sectors.
Quarter on quarter, Durban's labour market experienced a slight contraction in the second quarter of 2024, with a decrease in jobs and a rise in the unemployment rate to 23.0%. While some sectors, like community services and manufacturing, saw job gains, significant losses were observed in transport, finance and trade sector. The overall labour force also saw a reduction, reflecting disengagement from the labour market participants.
Year on year, although employment grew, and the labour force expanded. Sectors like manufacturing and private households saw substantial job gains, other sectors, such as community services, trade and transport faced notable declines. The steady absorption rate suggests that the labour market's capacity to create jobs has not kept pace with the growing labour force.
Statistics South Africa.(2024). Quarterly labour force survey. (Online) https://www.statssa.gov.za/publications/P0211/P02112ndQuarter2024.pdf
