The Construction Sector not immune to SA’s decline in employment



29-09-2021
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Property Wheel
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According to StatsSA’s Quarterly Employment Statistics June 2021, South Africa’s total employment decreased by 86 000 (-0.9%) quarter-on-quarter (q/q) from 9 652 000 in March 2021 to 9 566 000 in June 2021 largely due to decreases in numerous industries including the construction sector which reported – 7 000 (1.4%).



However, formal sector jobs increased by 60 000 year-on-year (y/y) during the second quarter of 2021 i.e., June 2020 to June 2021.



Full-time employment decreased by 17 000 (-0.25%) y/y between June 2020 and June 2021 and by 27 000 (-0.35) q/q from 8 602 000 in March 2021 to 8 575 000 in June 2021 which, among other industries including business services, manufacturing, trade, electricity, and transport, was partly attributed to a decrease of –11 000 (-2.6%) in the construction industry.



While part-time employment decreased by 59 000 (-5.6%) q/q from 1 050 000 in March 2021 to 991 000 in June 2021, it increased by 77 000 (8.4%) y/y between June 2020 and June 2021 with the built environment reporting an increase of 4 000 q/q (6.7%)



Gross earnings paid to employees in various industries, including the construction industry, decreased to R0.1 billion (-0.0%) from R715.2 billion in March 2021 to R715.1 billion in June 2021. Y/y, gross earnings increased by R70.4 billion (10.95) between June 2020 and June 2021.



Basic salaries or wages paid increased by R7.3 billion (1.1%) from R646.7 billion in March 2021 to R653.9 billion in June 2021 largely due to increases in business services, trade, manufacturing, transport, construction, and electricity. Y/y basic salary or wages also increased by R55.2 billion (9.2%) between June 2020 and June 2021.



Bonus and overtime paid to employees decreased by R7.4 billion (-10.8%) from R68.5 billion in March 2021 to R61.2 billion in June 2021 with an increase reported in the construction sector. Y/y bonus and overtime payments increased by R15.1 billion (32.9%) between June 2020 and June 2021.



There was a q/q increase of 1.7% in average monthly earnings paid to employees in the formal non-agricultural sector from R23 127 in February 2021 to R23 526 in May 2021 with y/y average monthly earnings paid to employees in the formal non-agricultural sector increased by 9,7%.


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