Back to Home

Data stories

Labour Market Overview


Introduction

In Q3, the Durban labour market showed signs of depression.


New Entrants The loss of new jobs was severe but the size of the labour market declined even more (-34 000 new entrants vs -12 000 jobs)
Unemployment Rate Unemployment decreased by 1,1% (Q3 18,2%) while expanded unemployment increased by 0,3%
Employment Absorption ? Employment absorption decreased by 0,6% (to 49,8%), meaning the working aged are more likely to be unemployed or not economically active in Durban than employed
Labour Force ? Labour force participation rate decreased by 1.6% (60,8%) ?
Source: Stats SA, 2018


In this economy, how likely are
working aged people to be employed?

Official Unemployment Rate %

The official unemployment rate is a measure of the percentage of the labour force who are actively looking for employment. Whereas, the expanded unemployment rate includes those who have been discouraged from seeking employment.
Official
Unemployment Rate %
Jul-Sep
2017 Q3
Jan-Mar
2018 Q1
Apr-Jun
2018 Q2
Jul-Sep
2018 Q3
Q to Q Y to Y
eThekwini Municipality
23,3
20,3
19,3
18,2
-1,1
-5,1
KwaZulu-Natal
24,6
22,3
21,8
23,0
+1,2
-1,6
South Africa
27,7
26,7
27,2
27,5
+0,3
-0,2
The official unemployment rate in eThekwini Municipality declined by 5.1% between 2017 q3 and 2018 q3. The official unemployment rate for KwaZulu-Natal Province and South Africa also declined, but to a lesser extent.
Expanded
Unemployment Rate %
Jul-Sep
2017 Q3
Jan-Mar
2018 Q1
Apr-Jun
2018 Q2
Jul-Sep
2018 Q3
Q to Q Y to Y
eThekwini Municipality
30,5
27,4
27,2
27,5
+0,3
-3,0
KwaZulu-Natal
41,0
40,6
40,9
41,2
+0,3
+0,2
South Africa
36,8
36,7
37,2
37,3
+0,1
+0,5
Source: Stats SA, 2018 (For both tables) Under the expanded definition of unemployment, KwaZulu-Natal has a higher unemployment rate than the national rate. Furthermore, both the provincial and national expanded unemployment rates increased between 2017 q3 and 2018 q3. EThekwini Municipality’s expanded unemployment improved by 3% within the same period.


UIF in Durban and KwaZulu Natal

Unemployment insurance claims in Durban and KZN are strongly correlated as 47% of all claims originate from Durban. Slight reductions are seen in UIF claims between October 2018 and November 2018.

data_uif-claims-for-durban-vs-kzn Created with Sketch. 14 000 12 000 10 000 8 000 6 000 4 000 2 000 0 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 47% of all UIF claims in KZN are from Durban eThekwini KwaZulu Natal
Source: KZN Department of Labour, 2018

Conclusion

While there has been some improvement in the year-on-year unemployment rate for eThekwini Municipality, unemployment continues to be an area of serious concern for eThekwini, KwaZulu-Natal Province and South Africa as a whole. Unemployment Insurance Funds (UIFs) claims are an indication of the level of distress in an economy. Following a sharp decline in UIF claims in December 2017, the number of UIF claims increased at the start of 2018 and oscillated around a similar level throughout 2018. This was the case for both Durban and KwaZulu-Natal Province
All rights reserved - Terms & Conditions

Make better informed decisions with cutting-edge economic insight

All rights reserved