Introduction

Employment: Activities

Questions 1 to 4 are based on the following information:

The following data provides information about employment shares of the agricultural, manufacturing and financial sectors for 1960 and 2018. Note that it is a percentage classification table.

Percentage share of total economy
Sector 1960 2018
Agriculture 22,2 6,1
Manufacturing 13,8 13
Financial services 2,6 17,3
Total absolute number of employment in the main sectors of the formal economy(thousands)  

4 651

  

11 338

1. Comparing 2018 with 1960, the relative contribution to employment by the agricultural sector declined, whereas for the financial sector it increased.

Correct. The statement is indeed true.

The relative contribution of the agricultural sector declined from 22,2% to 6,1%, whereas that for the financial sector increased from 2,6% to 17,3%.

Incorrect. The statement is true.

The relative contribution of the agricultural sector declined from 22,2% to 6,1%, whereas that for the financial sector increased from 2,6% to 17,3%.

2. Whereas the relative share of the agricultural sector decreased in 2018 compared to 1960, the absolute number of people employed increased.

Incorrect. The statement is false.

The relative share and absolute number of people employed in the agricultural sector declined. In relative terms it declined from 22,2% to 6,1%, and the absolute number of people employed decreased from 1 032 522 (22,2/100 x 4 652 000) to 691 618 (6,1/100 x 11 338 000).

Correct. The statement is indeed false.

The relative share and absolute number of people employed in the agricultural sector declined. In relative terms it declined from 22,2% to 6,1%, and the absolute number of people employed decreased from 1 032 522 (22,2/100 x 4 652 000) to 691 618 (6,1/100 x 11 338 000).

3. Both the relative share of the financial sector and the absolute number of people employed in the financial sector increased in 2018 compared to 1960.

Correct. The statement is indeed true.

The relative share of the financial sector increased from 2,6% to 17,3%. The absolute number of people employed increased from 120 926 (2,6/100 x 4 651 000) to 1 961 474 (17,3/100 x 11 338 000).

Incorrect. The statement is true.

The relative share of the financial sector increased from 2,6% to 17,3%. The absolute number of people employed increased from 120 926 (2,6/100 x 4 651 000) to 1 961 474 (17,3/100 x 11 338 000).

4. Whereas the relative share of manufacturing decreased in 2018 compared to 1960, the absolute number of people employed increased.

Correct. The statement is indeed true.

The relative share of manufacturing declined from 13,8% to 13%. The absolute number of people employed increased from 629 418 (13,8/100 x 4 651 000) to 1 473 940 (13/100 x 11 338 000).

Incorrect. The statement is true.

The relative share of manufacturing declined from 13,8% to 13%. The absolute number of people employed increased from 629 418 (13,8/100 x 4 651 000) to 1 473 940 (13/100 x 11 338 000).

5. Which one of the following employment data sources is based on a survey of enterprises in the formal non-agricultural sector of the economy?

Correct.

The Quarterly Employment Statistics (QES) is based on a survey of enterprises in the formal non-agricultural sector of the economy and is published quarterly.

Incorrect. The Quarterly Employment Statistics (QES) is based on a survey of enterprises in the formal non-agricultural sector of the economy and is published quarterly.

The Quarterly Labour Force Survey (QLFS) is a survey of households/dwellings to obtain data on employment.

6. Employment in the informal sector is also covered in the Quarterly Employment Statistics (QES) series.

Incorrect. The statement is false.

Employment in the informal sector is excluded from the Quarterly Employment Statistics (QES) but is included in the Quarterly Labour Force Survey (QLFS).

Correct. The statement is indeed false.

Employment in the informal sector is excluded from the Quarterly Employment Statistics (QES) but is included in the Quarterly Labour Force Survey (QLFS).

7. In Oct-Dec 2019 (more/fewer) people were employed in the formal sector than in Oct-Dec 2018.

Incorrect.

11 346 000 people were employed in the formal sector in Oct-Dec 2018 and 11 331 000 were employed in Oct-Dec 2019. Fewer people were therefore employed in Oct-Dec 2019.

Correct.

11 346 000 people were employed in the formal sector in Oct-Dec 2018 and 11 331 000 were employed in Oct-Dec 2019. Fewer people were therefore employed in Oct-Dec 2019.

8. In which period between Oct-Dec 2018 and Oct-Dec 2019 was employment in the informal sector the highest?

Incorrect.

The number of people employed in the informal sector was the highest in April-June 2019 with 3 048 000 people employed.

Incorrect.

The number of people employed in the informal sector was the highest in April-June 2019 with 3 048 000 people employed.

Incorrect.

The number of people employed in the informal sector was the highest in April-June 2019 with 3 048 000 people employed.

Incorrect.

The number of people employed in the informal sector was the highest in April-June 2019 with 3 048 000 people employed.

Incorrect.

The number of people employed in the informal sector was the highest in April-June 2019 with 3 048 000 people employed.

9. Which age group had the highest number of people employed in the period Oct-Dec 2019?

Incorrect.

The number of people employed in this age group was 1 127 000. The highest number of people employed was in the age group 35-44 with 5 143 000 people.

Age group Employment (thousands)
15-24 1 127
25-34 4 839
35-44 5 143
45-54 3 695
55-64 1 616

Incorrect.

The number of people employed in this age group was 4 839 000. The highest number of people employed was in the age group 35-44 with 5 143 000 people.

Age group Employment (thousands)
15-24 1 127
25-34 4 839
35-44 5 143
45-54 3 695
55-64 1 616

Correct.

The number of people employed in this age group was 5 143 000, which was the highest.

Age group Employment (thousands)
15-24 1 127
25-34 4 839
35-44 5 143
45-54 3 695
55-64 1 616

Incorrect.

The number of people employed in this age group was 3 695 000. The highest number of people employed was in the age group 35-44 with 5 143 000 people.

Age group Employment (thousands)
15-24 1 127
25-34 4 839
35-44 5 143
45-54 3 695
55-64 1 616

Incorrect.

The number of people employed in this age group was 1 616 000. The highest number of people employed was in the age group 35-44 with 5 143 000 people.

Age group Employment (thousands)
15-24 1 127
25-34 4 839
35-44 5 143
45-54 3 695
55-64 1 616

10. It is in the trade sector that most people were employed during Dec 2019.

Incorrect. The statement is false.

It was in the community services sector that most people were employed.

Correct. The statement is indeed false.

It was in the community services sector that most people were employed.

11. How many people were employed in the non-agricultural sector in Dec 2019?

Correct.

According to the QES, 10 213 000 people were employed in the non-agricultural sector.

Incorrect.

According to the QES, 10 213 000 people were employed in the non-agricultural sector.

12. It is in the construction sector that the percentage year-on-year increase was the highest.

Incorrect. The statement is false.

It was in the community sector that the percentage year-on-year increase was the highest at 2,2%.

Correct. The statement is indeed false.

It was in the community sector that the percentage year-on-year increase was the highest at 2,2%.

Activities 13 to 17 are based on the data for employment in the non-agricultural sector published by the South African Reserve Bank in its Quarterly Bulletin, March 2020.

Note that this table is in an index format. Click here for an introduction to the use of index numbers in economics.

Link to doc Labour-employment in non-agricultural sector

Add (S-138)

13. How many people were employed in the non-agricultural sector in 2010?

Correct.

The base year is 2010 and in this year 9 522 141 people were employed in the non-agricultural sector.

Incorrect.

The base year is 2010 and in this year 9 522 141 people were employed in the non-agricultural sector.

14. How many people were employed in the non-agricultural sector in 2012?

Correct.

The base year is 2010. For this year the index was 100 and the number of people employed in the non-agricultural sector was 9 522 141. The index for 2012 is 104 and the number of people employed was therefore 104/100 x 9 522 141 = 9 903 027.

Incorrect.

The base year is 2010. For this year the index was 100 and the number of people employed in the non-agricultural was 9 522 141. The index for 2012 was 104 and the number of people employed was therefore 104/100 x 9 522 141 = 9 903 027.

15. In 2019 the manufacturing sector employed 44 852 people less than in 2012.

Correct. The statement is indeed true.

In 2102 the number of people employed in the manufacturing sector was 98,6/100 x 1 281 482 = 1 263 541 and in 2018 the number of people employed in the manufacturing sector was 95,1 x 1 281 482 = 1 218 689. This indicates a decline of 44 852 people.

Incorrect. The statement is true.

In 2102 the number of people employed in the manufacturing sector was 98,6/100 x 1 281 482 = 1 263 541 and in 2018 the number of people employed in the manufacturing sector was 95,1 x 1 281 482 = 1 218 689. This indicates a decline of 44 852 people.

16. What was the change in employment for the trade sector between the second and third quarter of 2019?

Correct.

The base year is 2010. For this year the index was 100 and the number of people employed was 2 002 821. In the second quarter of 2019 the index was 112,7, which gives us an employment figure of [(112,7/100) x 2 002 821] = 2 257 179. In the third quarter of 2019 the index was 114, which gives us an employment figure of [(114/100) x 2 002 821] = 2 283 216.

Employment therefore increased by 2 283 216 – 2 257 179 = 26 037.

Incorrect. Employment increased by 26 037.

The base year is 2010. For this year the index was 100 and the number of people employed was 2 002 821. In the second quarter of 2019 the index was 112,7, which gives us an employment figure of [(112,7/100) x 2 002 821] = 2 257 179. In the third quarter of 2019 the index was 114, which gives us an employment figure of [(114/100) x 2 002 821] = 2 283 216.

Employment therefore increased by 2 283 216 – 2 257 179 = 26 037.

17. What was the percentage change in employment in the financial sector between 2018 and 2017?

%

Correct. It is 1,03%.

The calculation is as follows:

(107,8/106,7 – 1) x 100 = 1,03%

Incorrect. It is 1,03%.

The calculation is as follows:

(107,8/106,7 – 1) x 100 = 1,03%

Activities for formal and informal employment

18. The only reason why people work in the informal sector is that they are unable to find work in the formal sector.

Incorrect. The statement is false.

Being unable to find work in the formal sector is but one of the reasons why people engage in the informal sector.

Other reasons are:

They do not want to pay tax.
They are engaged in illegal activities.
They prefer the flexibility of the informal sector.
They prefer not to register their business.

Correct. The statement is indeed false.

Being unable to find work in the formal sector is but one of the reasons why people engage in the informal sector.

Other reasons are:

They do not want to pay tax.
They are engaged in illegal activities.
They prefer the flexibility of the informal sector.
They prefer not to register their business.

19. How many people were employed in the period Oct-Dec 2019 in the informal trade sector?

Correct. The answer is 1 132 000.

Incorrect. The answer is 1 132 000.

20. In which of the following informal sectors for the period Oct-Dec 2018 to Oct-Dec 2019 was the percentage decline in employment the greatest?

Incorrect.

It was in construction with a decline of 16,1%. Mining declined by 5,9%.

Incorrect.

It was in construction with a decline of 16,1%. Manufacturing declined by 2,1%.

Correct.

It was in construction with a decline of 16,1%.

Incorrect.

It was in construction with a decline of 16,1%. Trade declined by 4,9%.

Activities for employment coefficient and labour absorption capacity

21. The employment coefficient is the ratio between formal employment and the economically active population.

Incorrect. The statement is false.

The employment coefficient measures the degree of responsiveness of employment to economic growth. It is calculated by dividing the percentage change in formal employment by the percentage change in real GDP for successive periods of about five years.

Correct. The statement is indeed false.

The employment coefficient is calculated by dividing the percentage change in formal employment by the percentage change in real GDP for successive periods of about five years.

22. A change in the employment coefficient from 0,97 to 1,02 implies that more formal employment opportunities are created for each percentage point growth in real GDP.

Correct. The statement is indeed true.

The higher the employment coefficient, the more formal employment opportunities are created for each percentage point growth in real GDP.

Incorrect. The statement is true.

The higher the employment coefficient, the more formal employment opportunities are created for each percentage point growth in real GDP.

Questions 23 to 25 are based on the following information:

Period Real GDP

(R millions)

Formal employment

(thousands)

Informal employment

(thousands)

 Labour force

(thousands)
1 120 1 462 520 2 378
2 130 1 604 582 2 623

23. The employment coefficient is …

Correct.

The employment coefficient is calculated by dividing the percentage change in formal employment by the real GDP growth rate. The change in formal employment is 8,71%, and the real GDP growth rate is 10%. This gives us an employment coefficient of 0,97.

Incorrect. It is 0,97.

The employment coefficient is calculated by dividing the percentage change in formal employment by the real GDP growth rate. The change in formal employment is 8,71%, and the real GDP growth rate is 10%. This gives us an employment coefficient of 0,97.

24. The labour absorption capacity (%) is …

%

Correct.

The labour absorption capacity is calculated by dividing the increase in formal employment by the increase in the labour force. The increase in formal employment is 142 000 and the increase in the labour force is 245 000.

142 000/245 000 x 100 = 57,96%

Incorrect. It is 57,96%.

The labour absorption capacity is calculated by dividing the increase in formal employment by the increase in the labour force. The increase in formal employment is 142 000 and the increase in the labour force is 245 000.

142 000/245 000 x 100 = 57,96%

25. The labour absorption rate (%) in period 2 is …

%

Correct.

The labour absorption rate is calculated as the ratio of employment (formal and informal) to the total working age population. Formal and informal employment in period 2 is 2 186 000 and the working age population is 3 720 000.

2 186 000/3720 000 x 100 = 58,76%

Incorrect. It is 58,76%.

The labour absorption rate is calculated as the ratio of employment (formal and informal) to the total working age population. Formal and informal employment in period 2 is 2 186 000 and the working age population is 3 720 000.

2 186 000/3720 000 x 100 = 58,76%