An estimated 89 000 jobs were created during the fourth quarter of 2009, as signs of stability in the labour market emerged, Statistics South Africa (Stats SA) reported on Tuesday.

The increase in the number of jobs created came after three consecutive quarters of massive job losses, however, Stats SA DDG Kefiloe Masiteng warned that the nature of the jobs created was mostly informal, and elementary.

Unemployed decreased by around 27 000 during the fourth quarter of 2009, while the number of workers discouraged to find employment increased by 54 000.

The country’s official unemployment rate dropped slightly to 24,3% from 24,5% in the third quarter, with the Eastern Cape and North West provinces having the highest unemployment rate, while KwaZulu-Natal and the Western Cape had the lowest.

Stats SA reported that all industries showed a sense of stability, except for the agriculture and private households, which lost 38 000 and 31 000 jobs, respectively, in the final three months of 2009.

The number of people employed in the formal sector went up by 41 000, while the informal sector employment went up by 116 000. Masiteng said that in the informal sector, discounting the agricultural sector, there were job gains in all industries, except mining, utilities and trade, where there was no change.

However, Masiteng reported that South Africa had shed 870 000 jobs in 2009.

The biggest job losses were experienced in the trade industry, with around 291 000, or 9,2% job losses, while the manufacturing sector saw 202 000 job losses and the agricultural sector saw 149 000 job losses.

Gauteng, KwaZulu-Natal and the North West provinces were the hardest hit with job losses at 330 000, 116 000 and 109 000 respectively.

However, Masiteng noted that year-on-year, the financial sector indicated job gains of about 123 000, or 7,5%.

She said that although the fourth quarter of 2009 showed some signs of stability, compared with the previous quarter, the year-on-year picture was characterized by massive job losses, an increase in the official unemployment rate, and an increase in the number of discouraged job seekers.

“The labour market will take some time to recover to the levels observed in 2008, because employment is a lagging indicator,” she concluded.

Trade union Solidarity said that it was optimistic about the signs of improvement in the manufacturing sector.

“This sector has suffered considerable losses in the past year. In the second quarter of 2009, 9 000 jobs were lost, followed by a massive loss of close to 150 000 jobs in the third quarter of 2009. However, the sector succeeded in creating 19 000 jobs in the fourth quarter of last year,” explained Solidarity spokesperson Jaco Kleynhans.

The union noted that although the improvement in employment seems positive, Solidarity indicates that the share of job creation in the informal sector rather than the formal sector puts a damper on the improvement. Job creation in the informal sector was approximately three times higher than in the formal sector in the fourth quarter.

“Higher job creation in the formal sector is ultimately necessary to ensure that South Africans on all levels can earn a more sustainable income than what is traditionally the case in the informal sector,” said Kleynhans.

“The formal manufacturing sector, in particular, is a vital component of the South African economy and currently has a 17% share of the total formal employment figures. The stabilisation in this sector is definitely good news for the South African economy.”

Between the third and the fourth quarter of 2009, the number of population falling within the working age increased by 89 000, while the number of participants within the labour force went up by 61 000.