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The helter-skelter rush to make the 2010 deadline for the World Cup, along with the government’s speeded-up infrastructure plans, has pushed construction and transport into the top three sectors in creating jobs.

Community and social services provided the biggest employment growth in the second quarter, with about 71000 jobs created, according to the latest Labour Force Survey released by Statistics SA this week.

The construction sector created about 26000 jobs in the second quarter.

Brian Bruce, the chief executive of Murray and Roberts, said: “This is mainly in the construction of infrastructure — but not in residential building as the residential sector is suffering from high interest rates and low consumer confidence.”

The jobless rate was at 23.1% of the labour force in the second quarter of this year from 23.5% in the first quarter, the new quarterly report showed. The total number of unemployed people was 4.1million.

The survey, which provides estimates of employment in both the formal and informal sectors, showed the number of employed people was 0.8% higher than in the first quarter.

“This was largely on account of an expansion in formal sector employment (non-agricultural) from 9.3million in the first quarter to 9.4million in the second quarter... although employment in the informal sector also rose by 0.9%,” said Statistics SA.

Jacques Brent, vice-president for marketing and sales at the Ford Motor Company, said: “The decline in the manufacturing sector (in terms of creating jobs) is as a result of the market being down in the region of 16% year on year, thus resulting in the (lower) manufacturing rate of vehicles.

“Motor manufacturers aren’t feeling the pinch so hard this time around because, even though there is a decrease in local demand, the export market is doing quite well.”

The business community seems optimistic about growth patterns, especially towards 2010, Brent added.

“We feel that there will be some business growth in the second half of 2009 once the electricity crisis is under control.”

Brent also noted that in terms of car sales, the leading two provinces are Gauteng and Mpumalanga, which outclass Northern Cape, Eastern Cape and KwaZulu-Natal.

Razia Khan, head of research for Africa at Standard Chartered in London, said the slight decline in joblessness was encouraging.

“(This) suggests that the decline in unemployment will continue, despite recent softer GDP data.

“But what happens in the months ahead will be key,” she said, adding that if the robust growth of the construction sector was sustained more jobs would be created.

SA’s economy rebounded in the second quarter from a six- and-a-half-year low in the previous period, but expansion is still lagging the strong growth of the past four years.

Overall, the biggest job losses were in the trade sector, with a fall of 51000 jobs compared with the first quarter.

According to Kevin Lings, Stanlib economist: “It is good that the Labour Force (survey) results are quarterly because we can keep track of latest employment figures more frequently as it forms the number one economic objective of this country.

“In order for unemployment to remain at 23%, we have to create jobs and at least employ 170000 people a quarter. However, the current overall figure is not bad considering the poor economic climate.

“The next 12 months will be difficult because crucial parts of the economy such as the residential construction sector are slowing down and companies will start reviewing their cost base,” Lings said.

(Source: thetimes.co.za)