South African salaries dip amid declining confidence, power cuts
Average salaries in South Africa declined last month as rising inflation, low business confidence levels and rolling power cuts continued to weigh on the labor market, a BankservAfrica report showed.
The average nominal monthly salary measured in the BankservAfrica Take-home Pay Index slipped 2.7% to 14,457 rand ($785) in May from the year before, while take-home pay adjusted for inflation fell 8.8% to a record low.
“An environment of such low confidence is not conducive for job creation or comfortable wage increases,” said Elize Kruger, an independent economist.
South African business confidence has slumped for five consecutive quarters and is at its lowest level since a lockdown instituted during the height of the coronavirus pandemic, surveys conducted by Rand Merchant Bank and the Bureau for Economic Research show. The mood has been soured by the state power utility’s inability to meet demand for electricity, which has resulted in a series of outages.
The country is also contending with a 33% unemployment rate and the nation’s economic outlook remains bleak.
“The job market and salary adjustments are likely to remain lackluster for the remainder of the year, a scenario that could only exacerbate the unemployment crisis,” Kruger said.
Article Enquiry
Email Article
Save Article
Feedback
To advertise email advertising@creamermedia.co.za or click here
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation















