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Commenting on Statistics SA's Quarterly Labour Force Survey for the first quarter of 2010 - released earlier on Tuesday – Bishop said this data may change the MPC's mind on rates.
"The chance of a 50 basis point cut has just increased substantially," she said.
The economy lost 171000 jobs in the first quarter of 2010, after gaining 89000 jobs in the fourth quarter of 2009, according to Statistics SA.
"However, the increase in jobs in the last quarter of 2009 was due to the seasonal effect of the Christmas festive period, as most South Africans take their holidays in South Africa - around 80%," Bishop said.
Tuesday's jobs data was a truer reflection of the state of the employment sector in SA, which was still in recession, although given the backward looking nature of the employment data it was more reflective of business conditions in 2009, Bishop added.
She said the rise in unemployment was driven by the formal sector, where 140 000 jobs were lost, with the majority coming from the construction industry, partly due to the completion of projects ahead of the Fifa World Cup.
"A total of 48000 jobs were lost in the retail and wholesale trade sector in the first quarter of 2010, more than the 41 000 created in the fourth quarter due to the end of year holiday season.
"Indeed, 100000 jobs were lost in the informal sector in the first quarter of 2010 as many casuals employed in the hospitality, security, retail and wholesale sectors were let go after the festive period," Bishop said.
Of particular note was the loss of 33000 workers in the manufacturing sector - the third largest employer - as currency strength exacerbated the negative impact that weak European demand had on SA's export sector.
Modest demand
The figures showed some good news, Bishop said as 34000 jobs were created by private households. However, she added that only when economic recovery gained traction, would jobs be created.
"We do not expect rapid job creation this year, it is likely to be very gradual as demand is at best, modest."
Bishop said she expected no change in interest rates next week, but the unemployment figures made a cut "almost equally as likely".
She said she would expect more job losses in the second quarter of 2010 were it not for the Fifa World Cup which would see a huge increase in temporary employment.
"Virtually all the jobs created by the Fifa World Cup are likely to be lost thereafter, although individuals may gain some skills to help them in future employment."
Bishop said with the first quarter 2010 labour data creating a truer reflection of the unemployed, the Sarb might decide that an additional interest rate cut was warranted, “although more than just one sector's poor performance may be needed, even if it is as vital as employment".
- Sapa
