5. Employment trends in the Metals and Engineering Sector The most recent unemployment rate of 34.4% reflects the devastating impact of the COVID-19 lockdown on employment and overall productivity across the economy. According to Stats SA, the manufacturing sector, of which the M&E industry is a part, was one of the biggest contributors to the jobs bloodbath, with 83 000 jobs shed between the first quarter and second quarter of 2021. Stats SA
It is important to note that job creation should be consolidated effort by both the Government and the private sector. Investment-driven economic recovery is crucial to preserving jobs. Therefore, the Government needs to focus on creating an enabling and business friendly environment, including providing policy certainty..
5.1 Employment in the Manufacturing Sector Within the manufacturing sector, from the period 2002 third quarter to 2020 quarter three, total employment has declined from 1.3 million to 1.1 million as depicted in figure 41. During the same period, total employment within the M&E sector also declined from 448 532 to 402 760, thus representing a decline of 10%. Total employment within the M&E sector represents 35.9% of the total employment in the manufacturing sector as of the third quarter of 2020. Between 2010 quarter one and 2012 quarter three, the share of M&E employment in total manufacturing was on the surge, reaching the highest level of 37.7%. Thereafter, this share dropped
drastically to 34.9% in 2016 quarter one, its lowest level in the last five years to 2020, as major subsectors in the M&E sector experienced job shedding amid low production and demand. In 2020, total manufacturing employment dropped from 1 203 743 in the first quarter to reach 1 104805 in the fourth quarter of 2020, with 98 938 jobs being lost in the year. Within the M&E sector, jobs dropped from 429 617 to 395 555, thus 34 062 jobs lost during the same period.
Figure 41: Total M&E and total manufacturing employment and M&E percentage share
Source: Quantec
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State of the Metals & Engineering Sector Report - First half of 2021 review 2021-22
