Johannesburg – South African employers have indicated conservative hiring intentions for the last quarter of 2015, according to Lyndy van den Barselaar, managing director of Manpower SA.
The outlook remains positive, but has now declined slightly for three consecutive quarters, she said on Tuesday.
Van den Barselaar said that, while South Africa’s net employment outlook of +7% reflected conservative hiring intentions, it is important to note that employers in all five of the provinces that participated in the Manpower SA survey displayed positive employment outlooks.
Only 7% of respondents expected to decrease staffing levels in the fourth quarter, she said.
She said some of the country’s main industries have recently been affected by a large number of retrenchments, which resulted in decreased employee and business confidence.
Paired with the falling rand and uncertainty in electricity supply, the current business climate is not attractive to foreign investors, resulting in muted economic growth, she said.
"Mixed business signals make it difficult for employers to commit to actively recruiting new candidates, hence hiring intentions have remained positive, but relatively stable in comparison to the prior quarter or last year at this time.”
According to the survey payrolls are forecast to grow in all five geographic regions during the fourth quarter of 2015, with the strongest hiring pace anticipated by Western Cape employers. Employers report encouraging signs for job seekers in both the Eastern Cape and Gauteng.
“Cape Town is a popular tourist destination, particularly in the summer months towards the last quarter of the year. Increased tourism will not only create temporary employment for many job seekers, but will also contribute positively to the economy of Western Cape,” said Van den Barselaar.
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The strongest labour market is anticipated in the electricity, gas and water supply sector, while the wholesale and retail trade sector employers expect a steady hiring pace. Employers in the construction- and the transport, storage and communication sector report cautiously optimistic hiring plans, while employers in the mining and quarrying sector anticipate a decline in staffing levels.
Van den Barselaar said it is imperative that the current socio-economic and industrial challenges are resolved, and effective policies and plans are put in place to encourage further investment into South Africa.
This would facilitate the creation of employment opportunities.
Opportunities for the training and up-skilling of current employees are also of critical importance for companies to keep pace with the rapidly evolving technological space and business environment.
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