Oct 25, 2012
Gordhan forecasts 780 000 new jobsBack
Africa|Africa|South Africa|Pravin Gordhan
The modest forecast, in his Medium-Term Budget Policy Statement, came with a warning that slower growth and rising wage demands were likely to hamper new hiring.
"Rising wage demands across the economy could put pressure on new hiring. The economy is projected to create 780 000 jobs over the next three years."
Gordhan said employment gains had declined in line with growth over the past year, and high levels of structural unemployment was making labour market entry more difficult for young and unskilled job-seekers.
In the past 12 months, 125 000 jobs were created, of which 38 000 were in the public sector.
Gordhan pointed out that the private sector accounted for more than 75% of jobs in South Africa.
"Creating a buoyant private sector that works in partnership with an effective government will help South Africa to achieve faster growth and sustainable job creation," he said.
The minister said nominal wage settlements in the first nine months of 2012 were down to 7.4%, from 7.7% in 2011.
Real wage growth has however slowed to 1.8% in the first half of the year, compared to 2.7% last year.
In 2010, government set the target of creating five-million jobs by 2020, but so far employment gains have lagged far behind the rate of half a million new jobs a year needed to achieve it.
Edited by: SapaComment Guidelines (150 word limit)
Recent Research Reports
Road and Rail 2014: A review of South Africa's road and rail infrastructure (PDF report)
Creamer Media’s Road and Rail 2014 report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail network, the funding and maintenance of these respective networks, and the push to move road...
Real Economy Year Book 2014 (PDF Report)
This edition drills down into the performance and outlook for a variety of sectors, including automotive, construction, electricity, transport, steel, water, coal, gold, iron-ore and platinum.
Real Economy Insight: Automotive 2014 (PDF Report)
This four-page brief covers key developments in the automotive industry over the past 12 months, including an overview of South Africa’s automotive market, trade figures, production and the policies influencing the sector.
Real Economy Insight: Construction 2014 (PDF Report)
This five-page brief covers key developments in the construction industry over the past 12 months. It provides an overview of the sector and includes details of employment in the sector, infrastructure and municipal spending, as well as insight into companies’...
Real Economy Insight: Electricity 2014 (PDF Report)
This five-page brief covers key developments in the electricity industry over the past 12 months, including details of State-owned power utility Eskom’s generation activities, funding and tariffs, independent power producers and prospects for the sector.
Real Economy Insight: Road and Rail 2014 (PDF Report)
This six-page brief covers key developments in the road and rail industries over the past 12 months, including details of South Africa’s road and rail network and prospects for both sectors.
This Week's Magazine
While Ekurhuleni-based transformer manufacturer Reliable Transformers currently designs, manufactures and tests its products according to the SANS 780 specifications for distribution transformers and other applicable transformer specifications, it is working towards...
Global endpoint security solutions company Kaspersky Lab has introduced new measures to prevent cyber criminals from accessing sensitive data, alongside its malware-signature and heuristic device analysis detection methods. Threats to mobile devices have increased...
To ensure uptake and a positive impact, Wireless Fidelity (Wi-Fi) networks in cities must be provided at schools, community centres and commercial centres to enable citizens and government to access information that will improve access to and delivery of services....
Eco-estate Monaghan Farm, located near Lanseria airport, north-west of Johannesburg, has taken a new approach to modern living and sustainability with its 517 ha development, dedicated to farm living.
Forklift and lift-truck distributor Goscor Lift Hi-Reach launched the Genie SX-180, the tallest self-propelled super boom in Africa, in Johannesburg last month. “As the official distributor of the well-known Genie range of equipment in Southern Africa, we are pleased...