The number of people employed in the formal sector declined by 1%, or 79 000 employees, during the first quarter of this year, compared with the fourth quarter of 2009, Statistics South Africa's (Stats SA's) latest Quarterly Employment Statistics showed on Tuesday.

Year-on-year, the number of employed persons fell by 2,9%, or 242 000 employees, in the quarter ended March 31, 2010.

Stats SA noted that just under 8,1-million people were estimated to be employed in the formal sector at the end of the quarter.

The mining and quarrying industry increased employment by 3 000 employees, or 0,6%, quarter-on-quarter, but the number of employees declined by 9 000, or 1,8%, year-on-year.

On a quarter-on-quarter basis, the manufacturing industry also increased its employment levels by 3 000 employees, or 0,3%.

However, it recorded a year-on-year decline in employment of 51 000 employees, representing a 4,1% decline.

With many construction projects having been completed for the 2010 FIFA World Cup, the construction sector shed 50 000 employees, representing a 10,9% decline, year-on-year and 7 000 employees, representing a 1,7% decline, on a quarter-on-quarter basis.

Employment services company Adcorp's latest Employment Index also showed a marked decline in employment in the construction and trade sectors during April and May.

Between April and May, the Adcorp index recorded a 6,2% decline in employment, with employment in the construction sector dropping by 10,2% and in the trade sector by 9,2%.

Adcorp CEO Richard Pike noted that the sharp decline in these two sectors reflected the maturity of public infrastructure projects and the continued weakness in consumer spending.

"We have seen employment fall across all job types and particularly among low‐skilled and semiskilled workers, who are typically employed in the construction and trade sectors, which saw a 10,1% and 7,4% fall respectively," he added.

Full-time permanent employment also fell by 7,2% month-on-month.

Meanwhile, Adcorp highlighted that unemployment for highly skilled professionals in South Africa stood at just 1,4%.