South Africa’s formal non-agricultural sector saw a slight improvement in the final quarter of 2024 following a year of job losses. According to the Quarterly Employment Statistics (QES, Q4:2024) report from Statistics South Africa (Stats SA), employment in the sector increased by 12,000 jobs, reaching 10.64 million by December 2024. This marginal 0.1% rise contrasts with a year-on-year decline of 91,000 jobs since December 2023.
The trade industry led the recovery, adding 42,000 jobs, followed by business services with 22,000 new positions. However, not all sectors experienced growth. The community services sector saw the largest decline, losing 26,000 jobs, while construction and manufacturing each shed 13,000 positions.
Full-Time Employment Sees Slight Growth
Full-time employment increased by 10,000 jobs in the last quarter of 2024, rising from 9.477 million to 9.487 million. The trade sector drove this growth with 24,000 additional full-time positions, while the business services industry added 21,000 jobs. Transport and electricity sectors also saw slight gains, increasing by 3,000 and 1,000 jobs, respectively.
Conversely, the construction sector suffered the greatest losses, shedding 14,000 full-time jobs. Community services followed with 12,000 job cuts, and the manufacturing sector lost 10,000 positions. The mining industry also declined, reducing its workforce by 3,000 jobs. Despite the quarterly increase, full-time employment remains lower than the previous year, with a net loss of 26,000 jobs since December 2023.
Part-Time Employment Sees Small Gains but Annual Decline
Part-time employment experienced a modest rise of 2,000 jobs, reaching 1.153 million in December 2024. The trade sector contributed significantly, adding 18,000 part-time positions, while business services and construction each gained 1,000 jobs.
However, other industries struggled. The community services sector saw the biggest decline, losing 14,000 part-time jobs. Manufacturing shed 3,000 positions, while transport reported a decrease of 1,000 jobs. Year-on-year, part-time employment fell sharply, with 65,000 fewer jobs compared to December 2023.
While these figures indicate short-term improvements, the overall labour market remains under pressure, particularly in comparison to the previous year’s performance.
Employee Earnings See Strong Growth, but Overtime and Average Salaries Show Mixed Trends
Total gross earnings paid to employees increased by 6,1%, reaching R1,03 trillion in December 2024 compared to R969,4 billion in September 2024. This growth was primarily driven by higher earnings in key industries, with the trade sector leading the way at R13,6 billion in additional earnings. The manufacturing and community services industries followed closely, adding R13 billion and R12,4 billion respectively. Other notable gains came from the business services (R7,6 billion), construction (R6,4 billion), transport (R4,6 billion), and electricity (R2,5 billion) sectors. However, the mining industry stood as the only sector to report a decline, with gross earnings dropping by R910 million.
Basic Salaries and Wages Continue to Climb
Basic salaries and wages also saw an increase, rising by 0,8% (or R9,5 billion) to a total of R889,7 billion in December 2024. The community services, trade, manufacturing, business services, transport, construction, and electricity industries were the key contributors to this upward trend. However, the mining industry once again diverged from the overall growth, reporting a decline in salaries and wages.
On a year-on-year basis, from December 2023 to December 2024, basic salaries and wages increased by 4,0%, adding R34,1 billion to the economy.
Bonus Payments Surge While Overtime Pay Declines
The biggest quarterly gain came from bonus payments, which rose by R51,8 billion (85,4%), climbing from R60,7 billion in September 2024 to R112,5 billion in December 2024. This sharp rise was largely driven by increased bonus payouts in the manufacturing, trade, community services, business services, construction, transport, and electricity sectors. On a year-on-year basis, bonus payments grew more modestly by 3,2%, adding R3,4 billion compared to December 2023.
Meanwhile, overtime payments declined by 7,7% (R2,2 billion) in the fourth quarter of 2024, reaching R26,4 billion. Despite the overall drop, the manufacturing, trade, and construction industries reported increases in overtime payments. However, on a yearly basis, overtime payments fell by R2 billion, marking a 7,1% decline compared to the previous year.
Average Monthly Earnings Show Diverging Trends Across Industries
The average monthly earnings (AME) paid to employees saw a slight quarterly decline of 0,2%, dropping from R28 274 in August 2024 to R28 231 in November 2024. However, on a year-on-year basis, average earnings still showed strong growth, increasing by 5,3%.
A closer look at sector-specific earnings highlights notable disparities. The electricity sector stands out with the highest average monthly earnings, significantly surpassing the overall average. The mining and community services industries also report substantial wages, followed by competitive salaries in the transport and business services sectors. In contrast, the manufacturing, construction, and trade industries fall below the total average, reflecting lower wage levels. These differences highlight the varying economic roles and challenges faced by each industry.
While overall earnings are rising, the latest figures highlight a labour market experiencing both growth and disparities, with some sectors thriving while others struggle to keep pace.