Half a million jobs to go

2011-08-10 10:00

Johannesburg - Employment numbers during July slumped by 0.4%, a statistic equivalent to annual losses of 270 504 permanent and 79 380 temporary workers, human capital management group Adcorp said on Wednesday.

Releasing its monthly employment index, it said that more jobs were lost in July and more are to follow.

Adcorp predicts that a massive 468 192 jobs will be shed in the remaining months of 2011 and in 2012.

Meanwhile, Adcorp's July numbers showed that government employment continued to rise (by 1.4%) as did "unofficial" jobs, which grew at an annual rate of 191 124 during July.

"The public sector now accounts for all the job creation in our economy in 2011 while the growth in unofficial employment - coupled with the decline in official employment - reinforces a trend that has been in evidence since as far back as January 2000," said Loane Sharp, Adcorp's labour market analyst.

"Employment declined most sharply in the mining (7.7%) and manufacturing (8.6%) sectors in spite of sharply rising export prices for commodities and basic beneficiated manufactured products."

In this month's Index, Adcorp noted that membership of South African trade unions declined from 4.3 million in 2000 to 3.2 million in 2010, a trend which Sharp said is out of sync with the surge in strikes and work stoppages reported so far this year.

Highlighting the 14.6 million strike-induced workdays lost in 2010, Sharp said that Adcorp's research suggested that in 2011 this figure would rise by 22% to 17.8 million.

  • Mistypogo - 2011-08-10 10:18

    I am sure that Cosatu can add to the unemployment figures by closing down more factories which cannot afford to pay the minimum wage but their workers are happy to work for what is offered.

      ANC-FTL - 2011-08-10 15:42

      Here in Cape Town all my dad has to do in his factory is ask the ladies to bring in more people the next day and they always do. There are always people looking for jobs/money no matter the salary if you don’t like it the next person will. Unions are mucking up labour in this country and unemployment is only going to go one way until something drastically changes.

  • bill - 2011-08-10 10:19

    But wait , didn't Jacob Zuma promise us 500 000 jobs would be created? He surely knows best?

  • MaanDonkie - 2011-08-10 10:20

    Thanks to restrictive labour legislation and a government that cannot controll its Youth League this is going to get a lot worse

  • Ockert - 2011-08-10 10:22

    A big thank you to the trade unions which are the direct cause of this, and also Malemas calls for Nationalisation.

  • Blikskottel - 2011-08-10 10:23

    HKGK, but the masses will still vote ANC and all this will jst make them move to support Malema even more...and that will cause the final economic downfall.

  • The_Realist - 2011-08-10 10:25

    yup, ayencee excelling AGAIN! more of their job creation lies...

  • conoseur - 2011-08-10 10:26

    Is this maybe a result of BBBEEE

  • MC2010 - 2011-08-10 10:26

    And the ANC says it is creating jobs or rather want to create jobs! To create jobs you need to create a business friendly environment, which is not the case in SA.

  • one-way - 2011-08-10 10:27

    @Tamara says. Your stats you worried about are really gonna change now.

  • bar-one - 2011-08-10 10:28

    Due to electricity tariffs going up I am going to let my houshold helper go,and do my own garden.I own a manufacturing business, and since all this anti white and nationalisation talk business has dropped by 45%. I am letting 20 of my 38 staff compliment go ,with more to come if it continues. The main cause of this turnaround is purely in the hands of the government ,they do not know what an economy is or they do not care .You cannot be competitive in an environment where the government screws you because you are productive. If you look in the newspapres ,the only advertisers for employment are government ,exactly how will they pay these employess when the taxes have stopped flowing in ? They cannot keep milking us forever we do not steal our turnover.

  • nickwes - 2011-08-10 10:30

    Zuma promised to create 500 000 jobs by the end of of 2011. I guess we are not on track for that then. Secondly, do the unions not realise that the more they strike the more jobs will be lost?

  • Nuck Choris - 2011-08-10 10:30

    Well done the unions and labour laws. Really makes you want to employ people. When will these people wake up.

  • Rob Gunning - 2011-08-10 10:30

    Well that's because sustainable employment is not temporary Mr. Prez. If you ask staff to create 500 000 jobs within a year, the chances of those being permanent while also creating some kind of value is very small. Create an industry, not a temporary position that expires after a few weeks to months.

  • WCD - 2011-08-10 10:30

    Buckle up for a bumpy ride...

  • Malema fan - 2011-08-10 10:39

    Yes I agree and why is that? it is because the government is listening to a few clever economists and not to the cry of Malema and the others that wants to fight economical freedom for the masses of Unemployed and poor South Africans - please wake up and see that we just can not continue as before we need a tailor made economy for South Africa's needs.

      Lab-Rat - 2011-08-10 15:29

      LOL, really now?

  • Paul - 2011-08-10 10:40

    No no no, this can't be. Our esteemed President promised that he will create a million jobs, this year, added to the half a million last year wasn't it? Then the excuses start: global economy, misquoted, recession, apartheid, didn't mean actual jobs, only opportunities, the weather in China, Juju's rantings (bet they don't use this one), busy with my wives, busy with leases, writing off debt, lending money to dictators, ad nausea.

  • navarac - 2011-08-10 10:42

    As a small business owner, it makes economic sense to reduce costs - of which salaries are the highest - when expenses rise and wage demands are unrealistic.

  • Flower27 - 2011-08-10 10:47

    There are many people who do not want to work, unfortunately. There is a case of an alcoholic mother with 5 children for which she collects social grants to buy more alcohol while the children go without food, no motivation to work. I work and needed a domestic assistant. Five ladies were highly recommended to me by reliable sources over a period of two years and I caught all five stealing, the last one tried to steal 5X value of daily wage of groceries in one day. The items get smuggled out of handbags, in the sleeve of their jackets, pockets, etc. I now work extra hard but will no longer employ anyone. How must all the employers feel with all the strikes? Where possible replace labour with machinery?

  • Civil_Rights - 2011-08-10 10:47

    Don't be suprised when the crime rate increases. I feel sorry for those people who are breadwinners at home.

  • jaWat - 2011-08-10 10:49

    Let's all ask JZ to pull one out of the hat here!!! I assume not.

  • Not Black - 2011-08-10 10:50

    I should think that the so called MINISTRY in the PRESIDENCY - such as the one TREVOR MANUAL is serving on, take such serious issues as a task & project as the future growth of this land totally depends on creating an ecomnomy that creates employment and not one that loses jobs. What are these DUDS in the so called PLANNING DEPT of the Pres doing?

  • Kale - 2011-08-10 10:54

    Bet your glad you voted ANC now. Reap what you sow.

  • Duane - 2011-08-10 10:59

    The effects of BEE, Nationalisation and violent union strikes becoming evident.

  • Mthetheleli - 2011-08-10 11:00

    Is the government leading us brain-dead or completely ignorant?

      Lab-Rat - 2011-08-10 15:25

      I think both...

  • Ryan Tunney - 2011-08-10 11:01

    Well done ANC!! You guys are serious winners ha ha ha....

  • Gore - 2011-08-10 11:04

    Not Ayoba. How about employing thousands to count those thousands that lost their jobs - for statistics purposes. I'm trying to create jobs here!!

  • paypalawsuit - 2011-08-10 11:05

    clearly it is not a sign for strikers to stop their strikes and do anything to keep your job

  • StevenD - 2011-08-10 11:08

    Somethin I have observed: Companies are shedding labor to remain competetive and to maintain AA alignment. Firstly, labor is farmed of to contract based companies. Each core buisness area is managed by an AA candidate who contracts out to smaller skilled units. In the meantime, mechanisation is phased in to replace contracts and eventually the manager. There is far more incentive for a company to reduce its labor force and mechanise than to grow their labor force. Labor is the greatest expense and carries the greatest risk to buisness.

  • Dougalan - 2011-08-10 11:10

    And millions more jobs will go as long as unions are allowed to run unchecked and SA's totally restrictive job laws remain in place. A Communistic outlook has already destroyed dozens of countries. If South Africa wants a growth rate that is as good as Nigeria's or Mozambique's, free enterprise HAS to be encouraged now not restricted. How long will it take for people to wake up to the clear, basic facts?

  • Lekker Jan - 2011-08-10 11:12

    Well there's a surprise... not.

  • AndV - 2011-08-10 11:13

    Come JM and the pathetic JZ cronies. Let's hear more about nationalisation! The government needs to support and stimulate the private sector to create jobs. Lower personal income tax substantially to create more demand in the market place. They don't. Well, see where we are going to.....

  • Ingie - 2011-08-10 11:15

    Sp pray tell me how is Zuma going to create 5million jobs when this is happening.

      johan - 2011-08-10 13:22


  • Spyker May - 2011-08-10 11:17

    Frighting stats. Gov jobs = artificial and transient, thus not sustainable. Job losses in mining - despite market price trends (also in an up-cycle, imagine the situation in a downturn) - and manufacturing = Cusato action and ANC legislation. You get the feeling the ANC wants to 'legislate' current ownership out of existence - which they can and may well, but if so, will create a monster they cannot control (much akin to the municipal/state services - only an even greater scale, a scale that could/would cripple the economy). The reason employment droped/s in mining and manufacturing = due to Cosatu's wage demands > inflation (reminder - these industries have a measurable import component and are not governed solely by local inflation - something few workers understand and Cosatu is conveniently discounting). Mining (and all industries alike) needs a certain ROI to survive and thus for capital to grow - something no marxist can- or want to comprehend (one of the core reason the ideology is fundamentally flawed and not economically sustainable - its a system that can only function in a very primitive subsistence economy) - so they simply adjust the labour force to retain the required returns. Cosatu is simply 'striking' themselves out of existence - they would be better of in an alliance with private business than the ANC - remeber what happened in Poland.

  • X-Ray - 2011-08-10 11:22

    So, it seems to me, the more the strikes, the more the job losses because I believe that business can not afford the higher labour cost. But, so it will go on and on until everything has been destroyed and we will end up a second Zimbabwe. May God have mercy on us. I mean, 17.8 million workdays lost. What economy of our size can absorb that?

  • Bravo - 2011-08-10 11:24

    There is going to be a bloated government trying to soak up the unemployed in an effort to appease the masses. This isnt going to work - as has been shown by so many other countries out there. Any job is a decent job, and this requirement (for 'decent jobs')as well as rediculous laws are killing the employment market. Relax these onerous labour laws and let the economy go to do its thing. As business builds up, labour is in demand which leads to difficulty to find people to work which means wages go up. Basic economics

      greatgodpan - 2011-08-10 12:10

      yes we need to create products not jobs...........

      mogirl - 2011-08-10 12:48

      if onlyn the government ever opened an economics 101 textbook

  • LadyOfDesign - 2011-08-10 11:26

    wow... unbelievable...

  • X-Ray - 2011-08-10 11:32

    So, it seems to me, the more the strikes, the more the job losses because I believe that business can not afford the higher labour cost. But, so it will go on and on until everything has been destroyed and we will end up a second Zimbabwe. May God have mercy on us. I mean, 17.8 million workdays lost. What economy of our size can absorb that?

  • mosali - 2011-08-10 11:34


  • michal.mierzwa - 2011-08-10 11:49

    So where is the JOB CREATION that government has promised to the people?

      Thandi - 2011-08-10 12:53

      And you believed the government??????????????? - 2011-08-10 13:42

      "The public sector now creates all the job creation in our economy in 2011.......". Thats what it says!We the taxpayer are paying for the job creation in the most unproductive sector of the economy!

      angie - 2011-08-10 14:33

      Yes, Thandi, empty promises just like their heads!!!!!

  • 2WhiteStars - 2011-08-10 12:07

    I was retrenched in October last year. Been freelancing ever since and it's going quite well. I like having time off inbetween jobs, plus I am claiming from UIF (from the system I paid into for 20 years - before anyone lynches me). But yes, it's mayhem out there.

  • Seanred - 2011-08-10 12:10

    So much for..............

  • Virginia - 2011-08-10 12:26

    Unfortunately people will be forced out of employment, because small and medium business created by "White" retrenched males are now being victimized by laws such as AA and BEE.It is difficult for some of the people obtaining BEE certificates if you import most of you selling goods.

  • bryan hurd - 2011-08-10 12:29

    I am aware that the MASSIVE government corruption according to the newspapers amounts to many many millions of rands,it is up to the young{and i dont mean the quite old youths in the youth league,as they are also fingered by the press} to get this cash spread to them as promised,whites are irrelevant in south africa,its up to the black youth to get their leaders to stop stealing.

  • zackie - 2011-08-10 12:43

    zuma predicted 500,000 jobs or was that job losses?? SA econnomy is dieing slow death due to backward anc's policy

      Mikea - 2011-08-10 14:04

      True. I think Zuma couldn't read properly.

      Jamesons - 2011-08-10 15:33

      The TOLL gates will reduce 500 000 jobs in the private small business sector. Small businesses are not going to cope with the hikes of electricity and Tolls, as people have less money to spend.

  • Twa Quus - 2011-08-10 12:57

    who traveled lately, the roads are horrendous! lots of potential jobs...

  • CTS - 2011-08-10 13:02

    No rocket science needed to guess why a lot of jobs were lost. The absurdly higher salaries which are toye-toyed for must come from somewhere.

  • B2187 - 2011-08-10 13:09

    "Employment declined most sharply in the mining (7.7%) and manufacturing (8.6%) sectors". Aren't these the sectors that had to endure most of the strikes? Maybe it is their solution to the ever increasing wage bill.

      Feds - 2011-08-10 14:56

      Absolutely correct and rightly so. We have this same problem at my work. Union members demand 15% increases and full bonuses every year (other non-unionised ie office workers get none by the way). We explain to the unions that we cannot afford those increases and show why, explaining that if we did 15% of them will have to be let go. The unions dont care and push ahead anyway. So fine, we go with it. 3 months down the line, losses begin to filter through, we then have to approach the unions before layoffs and have to explain why. They act completely surprised and ignorant of the fact we explained, in detail 3 months earlier, exactly what would happen. Our actual results now match our forecast losses. Unions are the workers own worst enemy!!

      Werner - 2011-08-10 20:44

      I've seen an accurate analysis of this in an FNB newsletter I believe. Job losses can be almost directly linked to the wage rates in relation to inflation (and not just general inflation, the relevant inflation rate to that industry). The only 'sector' that managed to go against that norm was goverment jobs. They managed to hire and raise wages irrespective of the economic climate, merely requesting larger budgets on the next financial year I would wager...

  • Mad Dog - 2011-08-10 13:33

    No job creation! The anc lied to the People! A government cannot "create jobs", it can only facilitate the creation of jobs by the business sector. If they employ more people those have to be paid by someone else, a zero-sum calculation. Vote DA for job facilitation!

  • Nasdaq7 - 2011-08-10 13:38

    The reason for these job losses can be placed squarely at the door of the unions: commodity prices are at record highs. What reason can there be then that employment has fallen? The job losses are throughout the mining industry. Clearly the obvious reason is unrealistic labor wage demands. What other logical reason can there be? Are the CEOs overpaid? Well a CEO is only an individual, whereas if a million people demand a 10% increase - that is a massive demand upon mines. No COSATU I blame you.

  • Frox - 2011-08-10 13:42

    And goverment assigned R9billion towards job creation...all they are doing is using that money to pay for the additional, unnecessary jobs they are creating within government.

      tryanything - 2011-08-10 14:04

      Need money for the Bryntirion Hospital...

      Eric West - 2011-08-10 14:52

      Spot on!

      Dougalan - 2011-08-10 14:56

      Yep, the only job 'increase' reported is in our bloated, inefficient Civil service. They don't create money and jobs, they waste it using our tax money. Unions need to be reined in, restrictive labour laws removed and entrepreneurs encouraged. The ANC is currently an excellent example of how NOT to govern a country. And it's the tens of millions of average South Africans - mainly Black - that will suffer until voters wake up. Don't expect Zuma to do anything however - he's desperately trying to hold on to his job.

      Fred - 2011-08-10 15:18

      Hey don't criticise ... there are still lots of cronies who need to get on the gravy train. But seriously, what do they expect with our draconian labour laws, excessive wages, low productivity, constant demands, continual strikes, and now ANC idiots promoting nationalisation? Any growth we need has been wiped out and will take years to recover, if at all.

      WiseOwl2 - 2011-08-10 15:57

      Our current labour laws,legislation,ANCYL and trade unions are our biggest contributor to unemployment and reluctance to employ. WAKE UP ZUMA,VAVI AND CO. You are destroying our ailing economy.

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