Weekly Economics: SA’s employment increases in the last quarter of 2020

By Alexander Forbes Investments

Stats SA’s Quarterly Employment Statistics (QES) shows that total employment increased by 76 000 (0.8%) quarter on quarter, from 9 564 000 in Q3 2020 to 9 640 000 in Q4 2020, supported by increases in trade, community and business services.

Meanwhile, total employment decreased by 594 000 (-5.8%) year on year between December 2019 and December 2020. Full-time employment decreased by 11 000 (-0.1%) quarter on quarter, largely due to decreases in construction, manufacturing and business services. On an annual basis, full-time employment decreased by 565 000 (-6.2%) year on year in Q4 2020. Part-time employment rose by 87 000 (9.2%) quarter on quarter in Q4 2020, largely due to increases in community, trade and business services.

However, on an annual basis, part-time employment decreased by 29 000 (-2.7%) year on year in Q4 2020.

The negative impact of the coronavirus weighed heavily on business. Total gross earnings decreased by 4.6% year on year in Q4 2020, while basic salaries or wages decreased by R22.9 billion (-3.4%) year on year between December 2019 and December 2020, and bonus and overtime payments decreased by R13.2 billion (-12.7%) year on year in December 2020.

Furthermore, the average monthly earnings paid to employees in the formal non-agricultural sector increased by 2.4% quarter on quarter in Q4 2020, from R22 588 in August 2020 to R23 133 in November 2020. Year on year, average monthly earnings paid to employees in the formal non-agricultural sector increased by 3.1% in Q4 2020, rising below the inflation data print of 3.2% during that period, which highlights that salaries did not keep up with the cost of living.