• Thinking strategically

    Do policymakers actually consider improving trade performance, asks Geoffrey Chapman.

  • Power problems

    It's an iron law: no electricity, no modern economy, says Leopold Scholtz.

  • M2M money train

    SA's biggest mobile operators have found a new revenue stream, says Gugu Lourie.

Data provided by iNet BFA
Loading...
See More

Employment rate drops in January

Feb 11 2013 10:07 Sapa


Related Articles

Job hunting in post democracy SA

Union urges farmers to save jobs

Unemployment triggers debt crisis

Farms job cuts could grow to 200 000

Microsoft SA launches jobs initiative

Agriculture jobs in crisis

 

Johannesburg - Employment in South Africa fell drastically during January, according to the Adcorp Employment Index released on Monday.

Adcorp's labour market analyst Loane Sharp said in a statement employment fell in January at an annualised rate of 3.2%.

"Job losses occurred across all contract types and in all economic sectors with permanent posts declining the most, by 5.3% or 40 232 (jobs)," he said.

"This figure represents 80% of the employment losses last month."

The wholesale industry fell by 8.8%, or 13 000 jobs while the retail industry fell by 17.4% or 4 000 jobs.

According to the index, South African households failed to declare up to 30% of their incomes to the SA Revenue Service (Sars).

Sharp said South Africans also underreported their incomes in Statistics SA (Stats SA) surveys.

This led to a discrepancy between the estimated number of income tax payers in the surveys and the actual Sars number.

"The take out is that average taxpayer income is R266 641 per annum according to Sars and R193 325 per annum according to Stats SA - an undercount of 28%," he said.

"Without access to additional data from audits of individuals' tax returns, surveys on people's tax evasion behaviour or tax amnesty statistics, it is impossible to know the extent of under-reporting to Sars.

"Given improvements in taxpayer compliance in recent years, it is likely that income tax evasion has declined, but it is difficult to say by how much."

Sharp said Adcorp's index in February last year noted the results of Statistics SA's Quarterly Labour Force Survey that 440 000 small business closures occurred between 2006 and 2011.

"It is highly likely that these businesses continued to operate, but stopped reporting to the authorities and moved into the informal sector where compliance with income tax laws is patchy," he said.

"Some businesses are straddling both the formal and informal sectors, conducting some work in one and some in the other."

Sharp said Adcorp was waiting for Finance Minister Pravin Gordhan's budget speech on February 27.

"If the tax burden for high-income taxpayers goes up, so will the economic incentives to disappear into the informal sector," he said.

"In order to stem the growth of informal economic activity there is no real alternative but to relax labour laws and reduce income taxes."

Follow Fin24 on Twitter, Facebook, Google+ and Pinterest.

NEXT ON FIN24X

 
 
 

Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
7 comments
Add your comment
Comment 0 characters remaining
 

Company Snapshot

We're talking about:

Small Business

Expanding your business requires capital and banks have stringent lending criteria in place.
 

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...
Loading...