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Johannesburg - Salary and wage increases remain high, despite widespread job losses in the private sector and lower inflation.
Data released in the Reserve Bank's Quarterly Economic Bulletin on Wednesday showed the rate of increase in average nominal remuneration per worker in the formal non-agricultural sector of the economy accelerated to 15.1% in the year to the first quarter of 2010 from 11.8% in 2009. In the former period, increases in average nominal remuneration per worker in the private sector accelerated to 14.1%, the Sarb said.
The Sarb noted that following the peak in consumer price inflation in the third quarter of 2008, the year-on year rate of increase in average salaries and wages per worker started to decelerate in the second quarter of 2009, but remained high despite moderating overall consumer price inflation.
According to Andrew Levy Employment Publications, wage demands were the prime cause of strike action, which accounted for 98% of working days lost in the first half of 2010.
The average wage settlement rate amounted to 8.2% in the first half of 2010, lower than the 9.3% recorded in 2009 as a whole, Andrew Levy data shows.
However, in the recent past public-sector wage settlements have been somewhat higher than those observed in the private sector and the report expected a continuation of this trend in 2010, the Sarb said.
Despite widespread job losses in the private sector, all subsectors registered double-digit rates of remuneration increase, ranging from 10.4% in the non-gold mining sector to 26.4% in the electricity-supply sector. Within the public sector, increases in remuneration per worker averaged 16.6% over this period with increases in public-sector enterprises amounting to as much as 33.2% compared with 10.8% at local
government level.
The number of working days lost due to industrial action nationwide increased to 1.25 million in the first half of 2010 from 526 000 in the same period in the previous year, the Sarb noted.
An increase in production by the non-agricultural sector of the economy, combined with further job losses in the sector, resulted in an improvement in labour productivity during the first quarter of 2010.
The year-on-year rate of increase in labour productivity accelerated from 3.1% in the fourth quarter of 2009 to 5.0% in the first quarter of 2010, the Sarb said.
Given a slightly lower rate of increase in average salaries and wages per worker during the first quarter of 2010 and improved productivity, the rate of increase in nominal unit labour cost moderated from 12.0% in the year to the fourth quarter of 2009 to 9.6% in the year to the first quarter of 2010.
Data released in the Reserve Bank's Quarterly Economic Bulletin on Wednesday showed the rate of increase in average nominal remuneration per worker in the formal non-agricultural sector of the economy accelerated to 15.1% in the year to the first quarter of 2010 from 11.8% in 2009. In the former period, increases in average nominal remuneration per worker in the private sector accelerated to 14.1%, the Sarb said.
The Sarb noted that following the peak in consumer price inflation in the third quarter of 2008, the year-on year rate of increase in average salaries and wages per worker started to decelerate in the second quarter of 2009, but remained high despite moderating overall consumer price inflation.
According to Andrew Levy Employment Publications, wage demands were the prime cause of strike action, which accounted for 98% of working days lost in the first half of 2010.
The average wage settlement rate amounted to 8.2% in the first half of 2010, lower than the 9.3% recorded in 2009 as a whole, Andrew Levy data shows.
However, in the recent past public-sector wage settlements have been somewhat higher than those observed in the private sector and the report expected a continuation of this trend in 2010, the Sarb said.
Despite widespread job losses in the private sector, all subsectors registered double-digit rates of remuneration increase, ranging from 10.4% in the non-gold mining sector to 26.4% in the electricity-supply sector. Within the public sector, increases in remuneration per worker averaged 16.6% over this period with increases in public-sector enterprises amounting to as much as 33.2% compared with 10.8% at local
government level.
The number of working days lost due to industrial action nationwide increased to 1.25 million in the first half of 2010 from 526 000 in the same period in the previous year, the Sarb noted.
An increase in production by the non-agricultural sector of the economy, combined with further job losses in the sector, resulted in an improvement in labour productivity during the first quarter of 2010.
The year-on-year rate of increase in labour productivity accelerated from 3.1% in the fourth quarter of 2009 to 5.0% in the first quarter of 2010, the Sarb said.
Given a slightly lower rate of increase in average salaries and wages per worker during the first quarter of 2010 and improved productivity, the rate of increase in nominal unit labour cost moderated from 12.0% in the year to the fourth quarter of 2009 to 9.6% in the year to the first quarter of 2010.
