SA's jobless rate dipped to 23.1 percent in the second quarter of this year, but has been stuck near that level for more than two years, a new official labour force survey revealed yesterday.

Statistics SA said that 106 000 jobs were created in the second quarter of this year, reflecting faster economic growth and lowering the jobless rate from 23.5 percent in March.

But its new historic data showed that although SA's jobless rate was revised down by up to two-percentage-points for each of the past seven years, it was exactly the same as in March 2006, when it was 23.1 percent.

Unemployment has gone nowhere

"The fact of the matter is that in broad terms, unemployment has gone nowhere since March 2006," said T-Sec economist Mike Schussler.

"We are not creating jobs fast enough to meet the official goal of halving unemployment by 2014 — and it's more difficult to create jobs in a slowing economy."

SA's economy has grown at more than five percent for each of the past four years, but is set to slow to between three and four percent this year and next as consumer spending and global demand wane.

Over the past few years job creation has not kept up with growth in the labour force, which is flooded by young people leaving school every year.

Despite concerted official efforts, lack of skills and poor education has also made it difficult for new entrants to get jobs, even when they are available.

Shocking reflection

"The numbers are a shocking reflection of the fact that the economy is unable to stimulate satisfactory employment," said Standard Bank economist Shireen Darmalingam.

The number of unemployed people fell to 4.1-million in June from 4.19-million in March, while the labour force grew to 17.84-million from 17.81-million, Stats SA said.

Most of the jobs created in the second quarter of this year were in the community and

Mining also showed a rise of 13 000 jobs in the second quarter. But three key sectors shed jobs, with employment down by 51 000 in trade, most likely due to the effect of higher interest rates on retail spending. Manufacturing shed 20 000 jobs while agriculture lost 9000.

Analysts said it was clear SA would fall short of meeting an official goal of halving unemployment to 14 percent by 2014. For that, 600 000 jobs would have to be created every year.

Statistics SA did not publish data showing what had happened to the expanded jobless rate, which includes "discouraged" job seekers. But independent calculations show it was significantly lower than previously estimated. It fell to 29.1 percent in June from 30 percent in March and 37.3 percent in March last year.

Discouraged job seekers

Schussler said this probably stemmed from the new definition of discouraged job seekers, which was narrowed to anyone who had given up looking for work for only three reasons.

These are: no jobs in the area, no jobs for his or her skills, or no hope of finding work.

Stats SA has overhauled the labour force survey, which in the past was released twice a year, with a time lag of six months. The new data — to be released every quarter from now on — have been simplified, with the questions for respondents cut to 79 from 140.

Business Day