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)
Other Economy News
Updated 54 minutes ago Russian nuclear energy group Rosatom confirmed on Friday that it had canvassed funding options with South African government officials during a recent “nuclear vendor parade workshop” held in the Drakensberg on October 23. The company said the options discussed were...
Updated 58 minutes ago The shortfall on South Africa's trade account narrowed sharply to R2.91-billion in September from a revised R16.75-billion in August, as the import bill nearly matched that of exports, data from the revenue service showed on Friday. Exports in September rose by 18.2%...
Updated 2 minutes ago Now in its third year, the 2014 Nedbank Capital Sustainable Business Awards has recognised African business that have seemingly succeeded in balancing economic profitability with sustainable business practices, challenging companies in major industries to rethink the...
Updated 4 minutes ago US Secretary of Treasury Jacob Lew and South African Finance Minister Nhlanhla Nene met in Pretoria on Friday to discuss the state of the global economy, policies to promote regional growth and investment, and the development of trade and investment linkages between...
Recent Research Reports
Defence 2014: A review of South Africa's defence industry (PDF Report)
Creamer Media’s Defence 2014 report examines South Africa’s defence industry, with particular focus on the key participants in the sector, the innovations that have come out of the sector, local and export demand, South Africa’s controversial multibillion-rand...
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.
This Week's Magazine
In the next 20 years, it was expected that, in Africa, more people would live in cities and towns than in rural areas, United Nations Habitat executive director Dr Aisa Kirabo Kacyira said at the Human Settlements Indaba that took place earlier this month in...
Tough-talking Human Settlements Minister Lindiwe Sisulu has committed government to building 1.5-million low-cost houses over the next five years, telling the Human Settlements Indaba in Johannesburg on Wednesday that the State would achieve this target through the...
Over the past 20 years there has been persistent concern about deindustrialisation in South Africa, as well as the fact that locally produced manufactured products have been increasingly displaced by imports.
Financial agreement for Ghanian independent power producer (IPP) Cenpower Generation Company’s $900-million, 350 MW combined-cycle gas-turbine power plant was finalised earlier this month, paving the way for the project’s construction to begin before 2015 in Tema,...
The revenue implications for South Africa of ‘base erosion and profit shifting’ by corporate taxpayers are firmly in the crosshairs of the Davis Tax Committee (DTC) and Judge Dennis Davis hinted last week that recommendations were being considered to “detect and...