South Africa’s Most Vulnerable Employment Sectors
Nearly one-third of South Africa’s jobs stem from Elementary Occupations
May 1st marks the observance of May Day, also known as Workers’ Day, a significant occasion for trade unions worldwide. It honours the efforts and achievements of workers mobilized through organized labour movements, both internationally and within South Africa. On this day, Eighty20, South Africa’s leading consumer analytics and research business highlights some salient South African labour statistics.
In the latest Quarterly Labour Force Survey (QLFS) release, the unemployment rate saw a slight uptick, rising to 32.1% from 31.9% in the third quarter of 2023 (data for Q1 2024 will be available in two weeks). The number of unemployed in South Africa also increased marginally by 46 000, bringing the total to 7.9 million.
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Approximately 22% of employed individuals in South Africa are affiliated with a trade union. The largest number of trade union members are those employed in the “Community; Social and Personal Services” sector, with roughly 40% membership. Jobs in this sector include government work, churches, NGOs etc.. Although Mining is 72% unionised, and Electricity Gas and Water is 63% unionised, together they only employ 570 000 people. There was a noticeable Covid driven decrease in the number of employed trade union members (as measured by the QLFS) between 2020 and 2021 from 4.2 million to 3.7 million. The decrease of roughly 555 000 trade union member jobs was mainly the 280k fewer employed in the Community sector and 184k fewer employed in Manufacturing. However, the number has since risen to approximately 3.8 million union members.
Vulnerable sectors | Elementary Occupations
Certain vulnerable sectors, such as domestic workers, youth and those employed in Elementary occupations, are less likely to be members of a trade union. The ~4.8m Elementary occupations, including domestic workers make up the largest percentage of occupations (29%) followed by Service workers & Shop and Market Sales workers (17%), Clerks (10%), and Craft and Related Trade workers (10%).
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Only about 22% of employed individuals are members of a union. For women, the proportion is slightly better, with 24% of employed women being members of a trade union, but for those under 25 it is only 8%. Almost no domestic workers are part of a union despite having endured numerous challenges, including economic instability, recession, and the pandemic, placing them at significant risk as employers seek cost-saving measures through downsizing or job eliminations. Their lower skill requirements render them more susceptible to layoffs or workforce reductions.
The following six occupations collectively make up 77% of all the Elementary Occupations that account for nearly 29% of all jobs in South Africa:
- Farmhands and Labourers: 1.1 million workers, of which 29% (315k) are female and 10% aged 15 – 24
- Domestic workers: 876k, of which 95% are female (830k) and 2% aged 15 – 24
- Hand-packers and other Manufacturing Labourers: 525k workers, of which 39% (204k) are female and 15% aged 15 – 24
- Helpers and Cleaners in Offices, Hotels and other Establishments: 509k, of which 76% (386k) are female
- Street Food Vendors and Related Workers: 384k, of which 63% (242k) are female
- Sweepers and Related Labourers: 269k, of which 72% (193k) are female
Eighty20 highlights the vulnerability of women and youth in the South African labour force, a troubling aspect of the economy concerning these demographics. Approximately 8% of workers in elementary occupations are under the age of 25.
Vulnerable sectors | Women
Eighty20 has created a National Segmentation that divides all adult South Africans into eight homogenous groups. The ENS view provides a useful lens through which to view the South African population across a myriad of different aspects, including employment. The segmentation provides insight into two extremely vulnerable segments.
One is the 7 million Mothers of the Nation segment. These are low income, typically female grant recipients (40%) who are mainly unemployed or underemployed. Their average age is 35 years with an average personal income of around R1,000 per month, although their average household income is eight times this figure. If they are employed, it is likely an elementary occupation with most Domestic Workers in this segment. More worryingly, 67% of women with children under the age of two are single or have never been married.
Of those elementary occupations listed above, we find four mostly female occupations: Street Vendors (food and non-food), Sweepers as well as Helpers & Cleaners that account for ~1.3 million jobs. Domestic Helpers and Cleaners are a further 876 000 people, and 95% are female. Together these female-dominated occupations account for nearly 13% of the entire South African labour force.
Vulnerable sectors | Students & Scholars
The other segment is the 8 million Students and Scholars segment. These individuals, all aged under 24 are also low income, but primarily because they are just starting their adult lives. They have an average personal income of around R4 000 per month (R13 000 household income), and account for R400 billion total annual spend. They are evenly split between males and females, and 14% have some type of paid work.
Youth unemployment is a massive problem in this country with the 15 –24 age group facing a 59.4% unemployment rate, a rate which excludes not only students, but those who have given up looking for work.
Whilst Workers Day recognises the role of unions and 22% of unionized workers may find comfort in their representation within senior government levels. Nearly 30% of the workforce still finds itself most susceptible to economic fluctuations, relying heavily on the generosity of more affluent households, concludes Eighty20.