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The unemployment rate was relatively stable in quarter two (Q2): 2009 at 23,6% as against 23,5% in quarter one (Q1):2009.

However, this stability marks a continued deterioration in the South African labour market resulting from the decline in employment for the second consecutive quarter in Q2:2009. The contraction in employment by 267 thousand in Q2:2009 was accompanied by a fall in unemployment (down 59 thousand) but an increase of 419 thousand among not economically active persons. And notably, discouraged work-seekers accounted for as many as 302 thousand of the rise in the not economically active.

These patterns suggest that in Q2:2009 there was a shift from both employment and unemployment into discouragement as individuals gave up hope of finding work or felt that that there were no jobs in the area in which they lived that matched their skills.

Reflecting the employment constraints in the labour market described above, there were quarterly declines in both the absorption rate and the labour force participation rate in Q2:2009. A lower level of desegregations of the employment outcome in Q2:2009 suggests that except for community and social services, in every other industry employment declined. Quarterly job losses were highest in private households (down 105 thousand), trade (down 59 thousand) and transport (down 30 thousand).

Year-on-year changes in Q2:2009 indicate a contraction in employment by 360 thousand, largely on account of a fall in non-agricultural informal sector jobs by 231 thousand. Job losses were widespread affecting most industries. Trade lost the highest number of jobs in Q2:2009 compared with Q2:2008 (down 143 thousand) followed by agriculture (down 80 thousand) over a similar period.

The employment pattern described in table B largely reflects the quarterly decline in formal sector jobs by 93 thousand in Q2:2009 on account of job losses in the formal trade industry (down 39 thousand) followed by formal transport (down 21 thousand).

In the informal sector job losses were largest in the finance industry (down 23 thousand) and in trade (down 20 thousand).

For tables, go to: http://www.statssa.gov.za/news_archive/press_statements/QLFS-Q2-2009%20Press%20Release.pdf