country, at a whopping 47.7%, and is responsiblefor 50.4% of all company turnover in South Africa.Historically, the province’s economy was based onmining. However, it has increasingly evolved towardsvalue added manufacturing and services, with60% of growth now in the tertiary sector.The <strong>Gauteng</strong> Business Barometer, a provincialeconomic indicator launched by the private sector in2006, has provided detailed evidence of <strong>Gauteng</strong>’soutstanding economic performance, including thefollowing:• Total passenger arrivals at the OR Tambo InternationalAirport were expected to reach closeto 9 million in 2006, compared to around 5,5million in 1999.• Business activity has increased since 2005, withan overall 10,7% increase to 2006.• In 2001, the average number of properties soldin <strong>Gauteng</strong> was around 11 400 per month. Thisincreased to 14 000 per month in 2005.• Job advertisements in <strong>Gauteng</strong> newspapersincreased by 38% over the past few years.• Buildings completed in <strong>Gauteng</strong> nearly doubledfrom 253 000 square meters in 2000 to closeto 500 000 square meters in 2005.• Close to 40% of all houses sold in South Africain 2005 were in <strong>Gauteng</strong>.• Vehicle sales increased by 19%, advertisingsales increased by 14%, retail sales increasedby 10% while wholesale sales increased bynearly 18% over the past year to 2006.• While the overall index showed a slight dropsince an all-time high in February 2006, it is stillup 9% compared to a year ago.Employment<strong>Gauteng</strong>’s unemployment rate at 22,8% in September2005 is the second lowest of all South Africa’sprovinces and has shown the fastest decline of allprovinces, from 30,4% in September 2001.Over 75% of the provincial workforce is employedin trade, finance, manufacturing, community servicesand the household sector, with 21% in construction,transport and mining and the balance in electricityand agriculture.The labour absorption rate – the percentage of theworking age population (15-65) who are employed– increased from 47,4 % to 50.9% from March2002 to March 2006. The total number of peopleemployed in <strong>Gauteng</strong> increased from 2,8 million inMarch 2002 to 3,293 million in March 2006.PovertyPoverty and inequality remain a significant challenge,particularly among children. Income poverty has beenaddressed through a variety of strategies, includingthe promotion of economic growth and job creation,as well as the provision of social grants and short-termjobs through the Expanded Public Works Programme.Poverty, human development and inequality indicatorsremain worst among the African population while thewhite population has a better quality of life.However,there are signs of a slow shift in this regard.Jobs per economic sector(March) 2002 2003 2004 2005 2006Agriculture, forestry etc 1,0 0,6 0,9 1,5 1,9Mining and quarrying 4,5 4,0 3,9 2,7 2,4Manufacturing 16,4 17,3 16,7 18,1 17,6Electricity, water and gas 0,7 0,7 1,2 1,8 1,2Construction 4,2 5,2 4,2 6,7 7,2Wholesale and retail trade 23,2 21,0 23,5 21,9 24,9Transport, storage,commncation 7,5 7,0 6,9 5,9 5,6Financial and business services 15,6 17,1 16,2 14,5 15,0Community, personal services 17,1 19,1 19,5 18,3 15,4Private households 8,5 6,9 6,6 8,6 8,4Other 1,3 1,2 0,4 0,1 0,5Total (1000) 2 867 2 889 3 019 3 222 3 293Stats SA, Labour Force Survey, March 2002-2006 • <strong>Mid</strong>term <strong>Report</strong> - 2004/06
HouseholdsThe total number of households increased by 17% from2,475 million in 2002 to 2,983 million in 2005, reflectingpopulation growth, in-migration to the province andsmaller households. According to the July 2005 GeneralHousehold Survey, the percentage of households living ininformal dwellings declined from 19,8% in 2003 to 14,4%in 2005, despite high levels of in-migration. This indicatesthe positive impact of housing programmes in the province.The number of electrified households increased steadilyfrom 87,6% in 2002 to 89% in 2004. However, accordingStats SA, in 2005 a slight decline to 82,7% wasexperienced.Households using the bucket system declined from 1,8% in2002 to 1,5% in 2005, compared to the national averageof 10,2%.Access to water from a tap increased by 6.7% from 2002to 2005, with 65.3% of households having paid for waterin 2005.Human Development IndexAfrican 0.64Coloured 0.74Asian 0.81White 0.88Total 0.71Global Insight Southern Africa, Regional Economic Focus, 2005The Gini Coefficient, a measure of inequality, for 2005 was 0.59%African 0.61Coloured 0.50Asian 0.32White 0.38Total 0.59Global Insight Southern Africa, Regional Economic Focus, 2005Safety and SecurityWhile crime remains one of <strong>Gauteng</strong>’s most serious obstaclesto a better life for all its people, SA Police Servicesfigures show a reduction in contact crimes in the periodto April 2006 compared to the previous year. The totalaverage reduction for all contact crimes was 8,4%, and iswithin the national target of a 7% to 10% reduction. However,there was an increase in cash-in-transit and businessrobberies.<strong>Mid</strong>term <strong>Report</strong> - 2004/06 •