The Solidarity-ETM Analytics Labour Market Index fell to 43.5 in the first quarter of this year from an upwardly revised figure of 44.6 in the fourth quarter of 2014, pointing to an environment of continued falling job security in South Africa.

The first-quarter reading represented a deterioration in job security that was more pronounced than that of the prior quarter, but somewhat better than the multiyear low of 40.9 achieved by the index in the second quarter of 2014, the labour union and investment services group noted in a joint statement.

“At present, the index reflects conditions where there is, on aggregate, slow or no real wage growth and where some sectors continue to see retrenchments.

“It should be noted that the index has been showing these anaemic employment conditions since the end of 2007, with the exception of the period between the second quarter in 2010 and the first quarter in 2011, where it averaged 52.7,” it read.

The Employee Confidence Index, meanwhile, fell sharply during the quarter under review, hitting an all-time low of 30.7 from an upwardly revised figure of 43.5 in the prior three months.

This was driven by a higher number of respondents reporting deteriorated levels of job security over the quarter, congruent with a rising number of layoffs in the mining sector.

The share of survey respondents reporting satisfactory job security fell to 46.5%, down sharply from 52.4% in the fourth quarter, while those reporting unsatisfactory job conditions climbed to 26.6% from just 16% in the prior survey.

“It’s not all bad news, however, with the other two components in the index improving during the quarter. The Labour Affordability Index rose 6.5 points on the quarter to a reading of 47.6 – it’s highest level in over a year.

“The ETM Business Cycle Index rose by 2.8 points to 52.3, which is encouraging, as it implies that macroeconomic conditions have improved somewhat. Moreover, labour affordability has not deteriorated as it did through much of [last year],” the report held.

Solidarity added that it remained “questionable” whether South Africa’s economy could continue to recover, given a weak export environment, an “ailing” national energy utility and a volatile rand.

The index used 50 points as the breakeven point in the measure of rising and falling job security.