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SA workers' wage hikes shrink

Nov 18 2009 20:39

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Johannesburg - In recent months, inflationary pressure emanating from the labour markets has been moderating, the South African Reserve Bank (Sarb) said in its November Monetary Policy Review on Wednesday.

Wage inflation slowed to 11.5% in the first quarter and 8.7% in the second quarter of 2009, SARB said.

Measured in terms of the year-on-year changes in nominal remuneration per worker in the formal non-agricultural sector, it recorded just over 12% in each of the quarters of 2008.

Labour productivity, measured as the ratio of real value added to employment in the formal non-agricultural sector, rose by 0.1% in the first quarter of 2009, before declining by 0.5% in the second quarter.

Economy-wide unit labour cost inflation, measured as wage inflation adjusted for productivity changes in the formal non-agricultural sector, therefore declined to 11.3% in the first quarter of 2009 and 9.3% in the second quarter.

It recorded a year-on-year increase of around 12.6% in the final quarter of 2008.

"The average level of wage settlements reported for the first nine months of 2009 by the Andrew Levy wage settlement survey was 9.4%, suggesting that wage settlements are falling slowly when compared to the 9.8% recorded for the year 2008," SARB said.

Settlements had ranged from five percent in the paper/printing sector to 12.3% in the food/agriculture sector over the first nine months of 2009.

- Sapa

 
 
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