Job opportunities in agriculture fell by 24 000 (3%) in the second quarter compared to the first, bringing the total to 906 000. This is, however, still well above the long-term average of 799 000.
By Nico van Burick, senior journalist at African Farming and Landbouweekblad
Statistics South Africa has released its latest quarterly employment figures, showing the number of employed people rose by 19 000 to 16.8 million, while the number of unemployed increased by 140 000 to 8.4 million. The official unemployment rate now stands at 33.2%, up from 32.9% in the first quarter.
According to the survey, employment opportunities grew in the trade, construction and private household sectors. Declines were recorded in agriculture, community and social services, finance, transport, utilities and manufacturing.
Commenting on the situation in agriculture, Wandile Sihlobo, chief economist at Agbiz, said the quarterly drop was mainly in the livestock industry, certain crops and aquaculture. He linked this to specific challenges, such as outbreaks of foot-and-mouth disease (FMD). Delays in harvesting some summer crops, caused by an unusually long and rainy season, may also have affected employment.
Despite these challenges, Sihlobo noted, employment in the sector remains at encouraging levels. Year-on-year, agricultural employment increased by 1% compared with the second quarter of 2024. “The annual uptick is consistent with the robust production in field crops and horticulture we see in the country. For example, the Crop Estimates Committee forecasts the 2024/25 summer grains and oilseeds harvest at 18.74 million tonnes, up 21% year-on-year. We also see encouraging production data across various fruits, vegetables, wine and sugarcane.”
The subsectors that had lower employment levels compared to a year ago were mainly aquaculture, forestry and organic fertiliser production, he added.
But Sihlobo has also warned that ongoing foot-and-mouth disease in cattle was putting financial pressure on the livestock industry and, together with persistent trade concerns, posed some risk to agricultural jobs.
“Still, we doubt there will be significant losses, as the better harvest in the various labour-intensive subsectors provides some cushion. Notably, the trade matters are also concentrated on the US market, and not across all of South Africa’s agricultural export markets.”
Challenges and Opportunities
Beyond these immediate matters, there are long-standing challenges that continue to limit growth and job creation in agriculture, Sihlobo says. These include poor rail and road infrastructure, crimes such as stock theft, and declining municipal service delivery.
The release of government-owned land with title deeds to appropriately selected, deserving beneficiaries, and the improvement of land governance in the former homelands are key interventions that could kick-start long-term growth in the agricultural sector and boost employment opportunities, he says.
By August 2023, the state had acquired 2.54 million hectares of productive farmland via the Proactive Land Acquisition Strategy, which it was leasing out to beneficiaries, according to an article that appeared in The Conversation < https://theconversation.com/this-is-how-president-ramaphosa-got-to-the-25-figure-of-progress-in-land-reform-in-south-africa-226135 >in March 2024. Most of the roughly 2 500 beneficiaries had a 30-year lease agreement with the state.
If this land was fully utilised, Sihlobo says, there could be positive economic spin-offs in the various communities. In the current environment of low growth and high unemployment, this is an urgent step for growing the agricultural sector and unlocking employment growth possibilities.
The Western Cape Excels
Responding to the Stats SA report, Dr Ivan Meyer, Western Cape Minister of Agriculture, Economic Development and Tourism, said the province had once again demonstrated its economic resilience, recording a net year-on-year increase of 69 000 jobs in the second quarter.
This was the third-highest provincial gain after the Eastern Cape and Gauteng, and it positioned the Western Cape as the province with the lowest official unemployment rate at 21.1%, well below the national average of 33.2%.
The sectors showing the strongest year-on-year job growth were trade (up 42 000), agriculture (up 40 000, or 24.7%) and transport (up 23 000).
