South Africa’s employment picture remains challenging, with the latest Stats SA figures showing the formal sector shed 14,000 jobs between March and June.
Employment was also down by 95,000 compared with the same period last year, with manufacturing among the sectors recording significant job losses.
Labour economist Professor Haroon Bhorat says low economic growth remains the biggest obstacle to creating enough jobs, particularly for young people entering the labour market.
“So low growth is the primary problem. But overlaying that are two other factors. The second is what I call the deindustrialisation challenge.”
Bhorat says the continued decline in manufacturing employment is concerning, arguing that a stronger manufacturing base has historically played an important role in job creation in developing economies.
He says South Africa needs stronger economic growth and a more dynamic manufacturing sector to create sufficient and sustainable employment.
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