South Africa’s job market will remain relatively flat during the second quarter of the year, with a net employment outlook of 0%, the latest Manpower Employment Outlook Survey has shown.
This outlook, projecting limited opportunities for job seekers, was down four percentage points quarter-on-quarter and two percentage points year-on-year.
“While the country’s business environment is still in the process of recovering from the recession, economic growth has been slow paced. This has an enormous impact on employment. These factors, paired with the ever-rising fuel price, the added pressure of e-tolls and the high cost of living, mean employers are cautious about expanding their businesses,” Manpower South Africa MD Lyndy van den Barselaar said.
The most positive hiring intentions were reported in the electricity, gas and water supply sector, which increased by 3% to a net employment outlook of 8%.
“The expected employment gains in the electricity, gas and water supply sector are possibly owing to government’s increased efforts to supply those in rural areas with basic housing, electricity and access to clean water. The electricity and water industries are also engaged in efforts [to promote] the sustainable use of energy and resources. This creates a demand for specialised skills, as these are needed in the development and use of the technologies around sustainability,” Van den Barselaar explained.
Meanwhile, the finance, insurance, real estate and business sector, and the mining and quarrying sector had a net employment outlook of 5% each for the second quarter.
“With the cost of living constantly increasing, consumers and businesses are becoming far more aware of how they spend their money. This increases the demand for financial and business services, such as financial advice and planning. Meanwhile, mining and quarrying are essential services in a country like South Africa, contributing significantly to the gross domestic product (GDP). According to the Chamber of Mines, mining contributed 8.3% to the GDP in 2012. While the sector does fall victim to social unrest and other labour challenges, it is a sector that manages to recover,” Van den Barselaar said.
The weakest hiring intensions were reported in the construction sector, which had a net employment outlook of –9%.
Quarter-on-quarter, hiring prospects weakened in nine of the ten industry sectors surveyed, while five of the ten sectors showed declines and five showed increases year-on-year, the Manpower survey showed.
“[Through the survey] we see some evidence that many employers remain positive. But it is imperative that provincial government continues to support employment through skills training, as well as support for small, medium-sized and microenterprises. Policies such as the Skills Development Levy and the Skills Development Act support job creation and economic growth, which should reflect positively on the job market in future,” Van den Barselaar concluded.