![\"img1\"](\"https:\/\/www.statssa.gov.za\/wp-content\/uploads\/2018\/10\/img1.png\")
<\/a><\/p>\nEmployment costs, as mentioned earlier, contributed 14% (or R340 billion). The bill here includes salaries and wages, bonuses, medical aid, life insurance benefits, pension benefits, and other employee-related costs.<\/p>\n
How do employment costs differ across industries?<\/p>\n
The QFS provides data for eight industries in the formal business sector. The community, social and personal services industry recorded the highest proportion of spending on employment costs (32%) in the second quarter of 2018. Community, social and personal services includes activities related to private health services and social work, recreational activities, sport, radio, and television.<\/p>\n
The real estate and other business services industry \u2013 which includes the country\u2019s consultancy services, estate agents, lawyers and advertisers \u2013 also devoted 32% of total expenditure to employment costs.<\/p>\n Why the relatively high contribution to employment costs? Activities taking place within these two industries are often focussed on selling intellectual knowledge rather than physical goods. As a result, purchases contribute relatively less to total spending.<\/p>\n On the other side of the coin, notice the low contributions of employment costs in industries such as trade and manufacturing. Think of the factory that requires large amounts of raw material or the corner caf\u00e9 that requires stock to fill its shelves. These industries spend a higher proportion on goods and materials.<\/p>\n You might be wondering how this all compares with government. If the formal business sector spends 14% of its budget on its employees, what is the current situation in the state? The proportion is much higher. The South African government spent 41% of total expenditure on employee-related costs in 2015\/16, according to Stats SA\u2019s latest Financial statistics of consolidated general government<\/em> report.2<\/sup> In 2009\/10, the proportion was also 41%.<\/p>\n For more information, download the latest Quarterly financial statistics (QFS) <\/em>report here<\/a>. An annual review of performance in the formal business sector will be published in November 2018 in Stats SA’s Annual financial statistics<\/em> report (for financial 2017). So watch this space<\/a>!<\/p>\n <\/p>\n 1<\/sup>The formal business sector in this context refers to private businesses and public corporations covered by the Stats SA’s QFS survey, which excludes agriculture, financial intermediation, insurance, government and educational institutions.<\/p>\n 2 <\/sup>Download the latest Financial statistics of consolidated general government<\/em> report here<\/a>. General government spent R557,1 billion on employee-related costs in 2015\/16, out of a total expenditure of R1,37 trillion (excludes capital expenditure).<\/p>\n Similar articles are available on the Stats SA website and can be accessed here<\/a>.<\/p>\n For a monthly overview of economic indicators and infographics, catch the latest edition of the Stats Biz<\/em> newsletter here<\/a>.<\/p>\n <\/p>\n <\/p>\n","protected":false},"excerpt":{"rendered":" About 14% of total spending, according to recent figures. A quick review of the data shows that this proportion has remained relatively stable over the last decade. In the second quarter of 2009, employment costs contributed 15% of total expenditure in the formal business sector. Although there hasn\u2019t been a major change over time for read more »<\/a><\/p>\n<\/a><\/p>\n