South African firms report ‘positive but cautious’ Q4 hiring intentions

14th September 2016

By: Natasha Odendaal

Creamer Media Senior Deputy Editor

  

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South Africa’s mining, quarrying and manufacturing sectors will remain the country’s weakest job link as local employers report cautiously optimistic hiring intentions for the next three months to December, according to data released by workforce expert Manpower Group.

This data alternatively shows that the wholesale and retail trade, along with the transport, storage and communication sectors, indicate strong opportunities for job seekers.

“Of the 755 employers surveyed, 15% expect to increase staffing levels, 6% forecast a decrease and 78% anticipate no change,” highlighted the Manpower Employment Outlook Survey.

Further, the outcome of the survey indicates that hiring plans are two percentage points stronger quarter-on-quarter, and three percentage points stronger year-on-year.

Overall, adjusted for seasonal variations, the outlook for the period from October to December is a positive 9% growth.

“As we move into the last quarter, certain industries experience an expected spike in business associated with the holiday and festive season, possibly allowing for increased employment. This, of course, is dependent on many factors, including the state of the economy and the strength of the rand,” noted Manpower South Africa MD Lyndy van den Barselaar.

However, the country still faces an uphill battle against unemployment, which remains at a stubborn 26% plus, added Novare Holdings economic strategist Tumisho Grater.

“Even though the recent print makes this the best quarterly performance since the fourth quarter of 2014, South African employers are still adopting a cautiously optimistic stance for the next three months. This corresponds with business confidence this year reaching its lowest level since the final quarter of 2009.”

Companies seemingly remain reluctant to increase or add operating expenses in a business climate marred by an uncertain political outlook, weak domestic demand and economic policy uncertainty.

Meanwhile, the Manpower quarterly survey shows employment growth across all ten industry sectors reviewed during the fourth quarter.

The wholesale and retail trade sector employers report the strongest hiring prospects with a net employment outlook of +20%, while the transport, storage and communication sector show an outlook of +16%.

“The expected hiring gains in the wholesale and retail trade sector are usually expected towards the end of the year, as retail trade increases during the festive season. This may tie into the expected gains in the transport, storage and communication sector, as the inflow of imported products increases to ensure that stock levels are adequate for the increase in retail trade,” noted Van den Barselaar.

Further, the electricity, gas and water supply sector, as well as the finance, insurance, real estate and business services sector, are expected to hold steady at +14%.

The public and social sector, and the agriculture, hunting, forestry and fishing sector, show weaker growth outlooks of +10% and +5% respectively.

The most cautious hiring intentions are reported for the mining and quarrying sector, which has an outlook of +1%.

When compared with the previous quarter, the outlooks improve in seven of the ten industry sectors.

Edited by Creamer Media Reporter

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