Grassroots September 2016, Vol. 16, No. 3 | Page 33
News
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Jobs report shows the resilience of South Africa’s agricultural
sector
Wandile Sihlobo and Tinashe Kapuya
AgBiz
http://www.thegreenkeeper.co.za/jobs-report-shows-the-resilience-of-south-africas-agriculturalsector/
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I
n May, Statistics South Africa indicated that
the country’s official unemployment rate
reached 26.7% in the first quarter of 2016, rising
from 24.5% in the previous quarter. This increase in
unemployment was on the back of lower production
in some sectors of the economy, as weak economic
growth continues to negatively affect business
confidence.
the horticulture industry, increased cutting trees on
the back of drier conditions in the logging and
related services side, as well as increased
slaughtering in the livestock sector, as the higher
feed prices – induced by drought conditions –
continue to put the sub-sector under increased
pressure.
The total employment dropped by 355 000 to 15.7
million, which is a 2% quarter-on- quarter
contraction. On a quarterly basis, job creation
contracted in almost all the sectors of the economy,
with the exception of the agricultural sector, as well
as community and social services sector.
The outlook for the South African jobs market
remains poor as the domestic economy continues to
offer less confidence to business. The prospects of a
lower GDP growth, projected at 0.7% this year, will
keep the labour market under sustained pressure.
The agricultural sector is likely to register
contraction in the next quarter, due to reduced
activity in most crop producing areas, as an
aftershock of the drought. South Africa’s 2016 total
summer crops production is estimated at 8.6 million
tons, down from 11.9 million tons in the previous
year, and well below the 2014 volume of 17.5
million tons (Summer crops:maize, sunflower-seed,
soybeans, groundnuts, sorghum and dry beans).
The jobs gains in agricultural sector were, to
some extent, a surprise given that the sector is
currently battling the adverse impacts of an El Nino
induced drought. In the first quarter of 2016, the
agricultural sector employed 876 000 people, up by
2% from the previous quarter, but 2% lower when
compared to the same period last year. It is important
however to note that the primary agriculture
constitutes 6% of employment in South Africa,
which is well above sectors such as mining, and
almost at par with the transport industry.
A close observation of the agricultural sector
reveals that most sub-sectors performed well on a
quarterly basis, despite the negative effects of the
ongoing drought. The organic fertilizer industry,
animal husbandry, game industry and logging
services sub-sectors recorded notable gains, which
were however coming off a low base. Meanwhile,
the aquaculture industry and forestry industry
showed some contraction.
When comparing the first quarter of 2015 to the
first quarter of 2016, it is clear that some sub-sectors
such as crops, logging and related services and
livestock (farming of animals) showed positive jobs
gains. This could be attributed to seasonal
employment increases during the harvest period in
Grassroots
September 2016
Vol. 16 No. 3