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Construction Labour Force 2008 - 2024Q1

In the first quarter of 2024, the unemployment rate in South Africa rose to 32.9 percent, marking a second consecutive quarter-on-quarter increase. The construction sector experienced a notable decline, with the labor force shrinking by 8 percent quarter-on-quarter, resulting in a modest annual growth of 1.2 percent year-on-year, a steep drop from the 9.1 percent growth observed in the fourth quarter of 2023. Limpopo suffered the most, with 57,000 job losses in the construction sector since December, returning to its Q1 2023 levels. Other regions including the Eastern Cape, North West Province, and Gauteng also faced significant reductions in construction jobs compared to the previous quarter.

Despite a 1.7 percent quarter-on-quarter contraction in the Western Cape, this region saw a 40 percent increase in its construction labor force since Q1 2023, adding 68,000 jobs and outperforming other provinces in construction employment growth. It also reported the lowest unemployment rate at 25 percent, whereas the North West had the highest at 63 percent.

The construction industry contributed 7.3 percent to the total labor force of the country. The downturn in the construction labor market reflects the challenges of higher lending rates, weak economic sentiment, poor growth, and uncertainties surrounding the upcoming elections, all of which have placed significant pressure on the private sector construction environment. Despite some improvements in civil construction, they are insufficient to offset the sharp decline in the building sector, which represents about 50 percent of the total construction investment.

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