Publications
Partners
Johannesburg - Employment remained generally weak in February with only temporary employment showing a more substantial increase of 6.1%, according to the Adcorp Employment Index released on Thursday.
The index also showed that work in the formal sector remained in the doldrums, rising negligibly at an annual rate of just 1.4%, while permanent employment declined by 1.3%.
Government jobs increased by 5.5%, with the increase mainly seen in local and provincial government.
Conversely, manufacturing and financial services experienced the steepest declines, of -3.4% and -3.0% respectively.
"Much of the growth in temporary work can be attributed to the agency work sector, which grew by 3.2%," said Richard Pike, Adcorp's CEO.
"This suggests that employers do not envisage the proposed labour law amendments progressing to legislation. It also insinuates that employers may well be reluctant to employ new staff on a permanent basis until there is clarity on the legislation."
Pike said that the increase in temporary jobs demonstrated that technological solutions, which were increasingly being used to manage temporary workforces, were having an impact.
The index confirmed that the demand for high-skilled professionals remained, with 135 540 new jobs created on a net basis during February.
Meanwhile, demand for manufacturing-related jobs (such as machine operators and assemblers) remained weak, with 72 991 jobs lost during February.
"Since 2000, SA's temporary or part-time workforce has grown by 11.9% per annum, compared with an average annual decline of 1.5% in the permanent or full-time workforce," Pike said.
Historically, the management of temporary workforces had been subject to various challenges that limited the potential growth of this industry.
"As temporary employees are typically not on standard payroll systems, do not work typical hours and have variable reporting lines, employers have battled with monitoring and paying these staff.
"Similarly, many companies have not known even simple metrics such as the number of 'temps' employed and their average pay rate."
Pike added that technological innovations in managing temporary workforces had progressed rapidly which, in SA and internationally, had led to a sharp rise in temporary employment.
Temporary staff currently represented 29.6% of SA's workforce.
The index also showed that work in the formal sector remained in the doldrums, rising negligibly at an annual rate of just 1.4%, while permanent employment declined by 1.3%.
Government jobs increased by 5.5%, with the increase mainly seen in local and provincial government.
Conversely, manufacturing and financial services experienced the steepest declines, of -3.4% and -3.0% respectively.
"Much of the growth in temporary work can be attributed to the agency work sector, which grew by 3.2%," said Richard Pike, Adcorp's CEO.
"This suggests that employers do not envisage the proposed labour law amendments progressing to legislation. It also insinuates that employers may well be reluctant to employ new staff on a permanent basis until there is clarity on the legislation."
Pike said that the increase in temporary jobs demonstrated that technological solutions, which were increasingly being used to manage temporary workforces, were having an impact.
The index confirmed that the demand for high-skilled professionals remained, with 135 540 new jobs created on a net basis during February.
Meanwhile, demand for manufacturing-related jobs (such as machine operators and assemblers) remained weak, with 72 991 jobs lost during February.
"Since 2000, SA's temporary or part-time workforce has grown by 11.9% per annum, compared with an average annual decline of 1.5% in the permanent or full-time workforce," Pike said.
Historically, the management of temporary workforces had been subject to various challenges that limited the potential growth of this industry.
"As temporary employees are typically not on standard payroll systems, do not work typical hours and have variable reporting lines, employers have battled with monitoring and paying these staff.
"Similarly, many companies have not known even simple metrics such as the number of 'temps' employed and their average pay rate."
Pike added that technological innovations in managing temporary workforces had progressed rapidly which, in SA and internationally, had led to a sharp rise in temporary employment.
Temporary staff currently represented 29.6% of SA's workforce.
