Unit labour costs increased sharply as a result. The labour market outcomes in South Africa were severe. While about 1.6 million net jobs were created in the period 2003 to 2007, from 2008 to 2010 roughly 800 000 net jobs were lost. Job losses were heaviest in construction, retail, and financial services, which were the major job gainers in the boom period.
A key distinction between South Africa and most other countries’ experiences in the crisis has been the extent of job destruction, particularly considering the relatively shallow recession we experienced. Stronger economic performance in 2010 gave way to much more volatile real economy outcomes in 2011.