Cape Town - The permanent employment sector in SA has seen modest gains for the first time in 15 months, according to the latest Adcorp Employment Index.
This sector added 10 901 jobs during the month.
The biggest gains, however, occurred in temporary work, which added 17 297 jobs during the month and the informal sector, which added 12 249 jobs during the month.
In total, 40 477 jobs were added to the economy during October.
Out of the three sectors, the informal sector is rapidly growing in importance in the South African labour market.
Since January 2013, the informal sector has added 61 077 jobs, compared to a total decline of 252 675 permanent and temporary jobs.
This is reflective of a shift in an unstable employment landscape, according to Adcorp.
Loane Sharp, Adcorp’s labour market analyst, warns that, while recent StatsSA data states SA’s unemployment rate is steadily dropping, other indicators in the market reflect that conditions in SA still remain unfavourable for job creation.
“According to StatsSA’s report, employment has risen from 13 million at the bottom of the 2010 recession to more than 14 million in 2013 – a gain of more than a million jobs," said Sharp.
"However, we know that economic growth slowed from 4.0% to 1.7% per year over the same period."
Unemployed increasing
Moreover, since 2008, the number of unemployed people has increased from 3.9 million to 4.6 million. At present 25% of people – and 32% of people aged between 15 and 24 – are neither in education or employment.
“Activity in Adcorp’s recruitment databases – which represents the placement of nearly 200 000 job-seekers each year – does not reflect the growth in employment that StatsSA indicates," said Sharp.
"As shown in last month’s report, StatsSA reports that employment is growing at a rate of 2.8% per year, whereas Adcorp’s otherwise closely correlated recruitment indicator suggests that employment is currently falling 3.0% per year.”
Sharp said current data still paints a bleak picture for the employed and those looking for employment.
“There can be no question that SA’s labour market is in crisis. Two important indicators of the cyclical health of the labour market – namely the involuntary retrenchment rate (which is at an all-time high) and the rate of voluntary job changes (which is at an all-time low) – suggest that the job market is in a deep crisis,” said Sharp.
Strike impact
The number of strikes and the number of workdays lost due to strikes and work stoppages have increased steadily in recent years.
“Just three years ago, the annual strike season lasted fewer than three months, whereas now it lasts more than ten months of the year. The number of economic sectors involved in strikes has expanded greatly," he said.
"A slew of economic indicators, including manufacturing and mining production, export volumes and the exchange rate of the rand, clearly show the adverse impact of strikes.”
Sharp said a growing number of notable voices – including the World Economic Forum and the International Monetary Fund have decried the perpetual conflict in South African labour relations.
This sector added 10 901 jobs during the month.
The biggest gains, however, occurred in temporary work, which added 17 297 jobs during the month and the informal sector, which added 12 249 jobs during the month.
In total, 40 477 jobs were added to the economy during October.
Out of the three sectors, the informal sector is rapidly growing in importance in the South African labour market.
Since January 2013, the informal sector has added 61 077 jobs, compared to a total decline of 252 675 permanent and temporary jobs.
This is reflective of a shift in an unstable employment landscape, according to Adcorp.
Loane Sharp, Adcorp’s labour market analyst, warns that, while recent StatsSA data states SA’s unemployment rate is steadily dropping, other indicators in the market reflect that conditions in SA still remain unfavourable for job creation.
“According to StatsSA’s report, employment has risen from 13 million at the bottom of the 2010 recession to more than 14 million in 2013 – a gain of more than a million jobs," said Sharp.
"However, we know that economic growth slowed from 4.0% to 1.7% per year over the same period."
Unemployed increasing
Moreover, since 2008, the number of unemployed people has increased from 3.9 million to 4.6 million. At present 25% of people – and 32% of people aged between 15 and 24 – are neither in education or employment.
“Activity in Adcorp’s recruitment databases – which represents the placement of nearly 200 000 job-seekers each year – does not reflect the growth in employment that StatsSA indicates," said Sharp.
"As shown in last month’s report, StatsSA reports that employment is growing at a rate of 2.8% per year, whereas Adcorp’s otherwise closely correlated recruitment indicator suggests that employment is currently falling 3.0% per year.”
Sharp said current data still paints a bleak picture for the employed and those looking for employment.
“There can be no question that SA’s labour market is in crisis. Two important indicators of the cyclical health of the labour market – namely the involuntary retrenchment rate (which is at an all-time high) and the rate of voluntary job changes (which is at an all-time low) – suggest that the job market is in a deep crisis,” said Sharp.
Strike impact
The number of strikes and the number of workdays lost due to strikes and work stoppages have increased steadily in recent years.
“Just three years ago, the annual strike season lasted fewer than three months, whereas now it lasts more than ten months of the year. The number of economic sectors involved in strikes has expanded greatly," he said.
"A slew of economic indicators, including manufacturing and mining production, export volumes and the exchange rate of the rand, clearly show the adverse impact of strikes.”
Sharp said a growing number of notable voices – including the World Economic Forum and the International Monetary Fund have decried the perpetual conflict in South African labour relations.