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6. Per capita earnings in the manufacturing sector
Per capita income or earnings in the manufacturing sector is a measure of the amount of money earned per person employed in the sector, and the same principle applies when categorised by sub-sector.
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Figure 48: Total Manufacturing and M&E Real per capita earnings trend
Source: Quantec
As depicted in figure 48, real per capita earnings in the manufacturing sector increased from R35 074.99 in 2002 quarter three to reach R52 487.37 in 2021 quarter one, thus representing an increase of 49.6%. During the same period, real per capital income in the entire M&E sector also increased from R36 867.55 to reach R55 296.66, representing a 50% increase. On average, the M&E sector’s real per capital earnings is more than the total manufacturing sector’s real per capital earnings.
6.1 Real per capital income trends within the M&E sector subsectors
Figure 49 shows that real per capita earnings in the rubber products sub-sector increased from R43 982.47 in 2002 quarter three to reach R62 299.11 in 2021 quarter one, representing a 41.6% increase. During the same period, real per capita income in the plastic products sub-sector increased from R31 735.32 to reach R39 871.53, representing a 25.6% increase.
Figure 49: Rubber & Plastic products: Real per capita earnings trend
Source: Quantec
Figure 50 shows that real per capita earnings in the basic iron and steel products sub-sector increased from R47 422.16 in 2002 quarter three to reach R73 472.53 in 2021 quarter one, representing a 54.9% increase. During the same period, real per capital income in the non-ferrous metal products sub-sector increased from R45 691.92 to reach R79 754.07, representing a 74.5% increase.
Figure 50: Basic iron and steel & Non-ferrous metal products: Real per capita earnings trend
Real per capita earnings in the structural metal products sub-sector increased from R26 165.48 in 2002 quarter three to reach R42 190.02 in 2021 quarter one, as depicted in figure 51, representing a 61.2% increase. During the same period, real per capita income in the other fabricated metal products sub-sector increased from R37 421.31 to reach R45 841.79, representing a 22.5% increase as depicted in figure 51.
Figure 51: Structural & Other fabricated metal products: Real per capita earnings trend
Source: Quantec
Real per capita earnings in the General purpose machinery products sub-sector increased from R40 038.99 in 2002 quarter three to reach R66 926.86 in 2021 quarter one, as depicted in figure 52, representing a 67.2% increase. During the same period, real per capita income in the Special purpose machinery products sub-sector increased from R48 341.84 to reach R65 236.49, representing a 34.9% increase.
Figure 52: General purpose machinery & Special purpose machinery: Real per capita earnings
Source: Quantec
Real per capita earnings in the household appliances products sub-sector increased from R24 397.54 in 2002 quarter three to reach R48 251.00 in 2021 quarter one, as depicted in figure 53, representing a 97.8% increase. During the same period, real per capital income in the electrical machinery products sub-sector increased from R38 935.27 to reach R58 072.30, representing a 49.2% increase.
Figure 53: Household appliances & Electrical machinery: Real per capita earnings trend
Source: Quantec
Real per capita earnings in the bodies for motor vehicles products sub-sector increased from R30 076.20 in 2002 quarter three to reach R36 274.02 in 2021 quarter one, as depicted in figure 54, representing a 20.6% increase. During the same period, real per capita income in the motor vehicle parts and accessories products sub-sector increased from R30 149.89 to reach R58 156.45, representing a 92.9% increase. In the other transport equipment sub-sector, real per capita income increased from R34 919.79 to reach R42 510.35 during the same period, representing a 21.7% increase.
Figure 54: Bodies for motor vehicles; Motor vehicle Parts and accessories and Other transport equipment: Real per capita earnings
6.2 Conclusion
A general conclusion that can be drawn from the analysis in this section is that overall, the wage bill has been increasing since 2002. The level of increase in the wage bill varies across sub-sectors. Real per capita earnings in the manufacturing sector increased from R35 074.99 in 2002 quarter three to reach R52 487.37 in 2021 quarter one, thus representing an increase of 49.6%. During the same period, real per capital income in the entire M&E sector also increased from R36 867.55 to reach R55 296.66, representing a 50% increase. On average, the M&E sector’s real per capital earnings is more than the total manufacturing sector’s real per capital earnings.
Based on the data, the highest percentage increase in the wage bill during the period under review was in the Household appliances products sub-sector at 97.8%, followed by Motor vehicle parts and accessories products sub-sector at 92.9%. The lowest increases were in the bodies for motor vehicles, trailers, and semi-trailers product sub-sector, at 20.6%, followed by other transport equipment products sub-sector at 21.7%.
One of the challenges faced by the M&E sector has been an increase in labour costs and the empirical analysis in this section provides the evidence.
