South Africa’s job market has delivered a sobering picture in the latest Quarterly Employment Statistics (QES) report for Q3 of 2024, released by Statistics South Africa (Stats SA) on Thursday. While some sectors showed resilience, the overall numbers paint a concerning picture of the country’s employment landscape. 

Understanding salaries:

First, the good news: average monthly earnings grew by 2.6% in the third quarter of 2024. That means the typical South African employee is now earning R28,220 a month, up from R27,511 in the previous quarter. Over the past year, salaries have climbed by 6.6% — not too shabby, considering the challenges many industries are facing.

On top of that, total gross earnings rose by 1.3%, from R954.1 billion in June to R966.3 billion in September 2024. Key contributors? Business services added R12.2 billion to the pot, followed by community services, mining, and even the electricity sector.

But it’s not all rosy: industries like trade, manufacturing, and transport saw declines in earnings, showing that the recovery isn’t universal.

Jobs lost: the numbers you need to know

Now for the harder news. Employment in the formal non-agricultural sector took a hit, with 133,000 jobs lost between June and September 2024. That’s a 1.2% drop, leaving South Africa with only 10.6 million people in formal employment.

Community services — think public health and education — bore the brunt, shedding 131,000 jobs in just three months. Business services weren’t far behind, losing 15,000 positions. Manufacturing, transport, and mining also saw job losses, while trade and construction bucked the trend, adding 19,000 and 4,000 jobs, respectively.

Looking back over the past year, it’s even grimmer: 294,000 jobs have been lost since September 2023, reflecting the challenges of a sluggish economy.

Bonuses and overtime

Despite job losses, some workers did see their wallets boosted by bonuses, which jumped by 12.9% from June to September. But year-on-year, bonuses were actually down 6.9%. Overtime payments told a similar story: a decline of 4.8% for the quarter but a modest 2.3% increase over the year.

The big picture

FNB senior economist Koketso Mano shared a more optimistic view. “The outlook for South Africa’s economy is improving, with growth expected to approach 2% next year,” she said. Mano pointed out that structural reforms, coupled with investment, could lead to job creation and a more supportive environment for industries like construction, manufacturing, and trade.

In short, while some workers are earning more, the job market remains under pressure. The numbers highlight the urgent need for economic reforms and investment to create more opportunities.

For now, South Africans are left juggling the positives of growing salaries with the negatives of a shrinking job market. The hope is that ongoing reforms and infrastructure investment will help turn these stats around in 2025.