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We take a look at the formal number of employees in South Africa's trade industry, which can be broken down into three broad categories namely:
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So how many employees in South Africa's trade industry?
The line chart below shows the total number of employees for the various trade categories per quarter as calculated and published by Statistics South Africa's quarterly employment statistics publication. Readers will immediately notice the spikes in the red line for the December quarters. This is temporary employees/seasonal workers working in the retail industry as demand increases in this sector substantially during the Christmas holiday period.
As at the end of September 2018 quarter, the retail trade industry employed 894 966 people, 48% more than the wholesale trade industry that employed 603 774 during September 2018. The retail trade industry employed 2.5 times more people than the motor trade industry as at September 2018, with the motor trade industry employing 356 274 people. But we predict a strong decline in the motor trade industry in coming quarters as new car sales in South Africa continue to decline.
Over the last 9 years the number of employees in each of these sub sectors of trade grew as follows:
So over the last 9 years, the trade industry in South Africa added 403 096 jobs. That is 4.2% of the total number of formal sector employment of 9.732 million employees as at September 2018. And in total the trade industry employed 1.86 million people as at September 2018, which means it employs 19.06% of all formal sector employees.
Our only worry is the fact that trade is driven by debt. Consumers buy cars on credit, buy fancy luxury goods and credit cards and overdrafts. At some point this money will have to be paid back with interest. And this will have a significant impact on consumers and the retail sector going forward. One can expect more muted growth in turnover, sales and employment in the trade industry. The decline in number of employees in recent quarters for wholesale and motor trade can already be seen in the line graph above. Hold on tight. SA consumers and the trade industry is in for a rocky road.
Over the last 9 years the number of employees in each of these sub sectors of trade grew as follows:
- Wholesale Trade: 144 637 (or 31.5% increase)
- Retail Trade: 199 980 (or 28.77% increase)
- Motor Trade: 58 479 (or 19.64% increase)
So over the last 9 years, the trade industry in South Africa added 403 096 jobs. That is 4.2% of the total number of formal sector employment of 9.732 million employees as at September 2018. And in total the trade industry employed 1.86 million people as at September 2018, which means it employs 19.06% of all formal sector employees.
Our only worry is the fact that trade is driven by debt. Consumers buy cars on credit, buy fancy luxury goods and credit cards and overdrafts. At some point this money will have to be paid back with interest. And this will have a significant impact on consumers and the retail sector going forward. One can expect more muted growth in turnover, sales and employment in the trade industry. The decline in number of employees in recent quarters for wholesale and motor trade can already be seen in the line graph above. Hold on tight. SA consumers and the trade industry is in for a rocky road.