Jobs spike 'just a flash in the pan'

30 September 2014 - 10:14 By TJ STRYDOM
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Guys looking for jobs. File photo.
Guys looking for jobs. File photo.
Image: Katherine Muick

The FNB Stadium would not be big enough for all the South Africans who have found jobs this year - you would be able to fill Ellis Park with the overflow.

But the spike will be tough to sustain.

Statistics SA's quarterly report on employment showed yesterday that, between March and June, as many as 155000 people found employment. In the first three months of the year only 9000 were able to do so.

But most of these new jobs have been in the public service and, with finances tightening, this could be a tough trend to maintain, analysts at Barclays Capital said yesterday.

"The underlying data showed that the public sector continued to lead in formal employment creation, accounting for 143000 of the jobs created during the quarter," the analysts said.

Economic growth has been feeble so far this year and established businesses and entrepreneurs have not been able to absorb many of the unemployed.

Business will probably shed more jobs in the coming months.

Some companies, such as MTN, have embarked on retrenchments and are planning to shed hundreds of jobs because of lacklustre sales.

A sword hangs over the head of furniture retailer Ellerines and its parent African Bank Investment Limited, which are in business rescue and under curatorship respectively.

Ellerines employs more than 6000 people and more than 2800 of them will be affected by one of the suggestions in the business rescue plan, Business Times reported this month.

And the state's ability to dole out jobs is diminishing.

"We see the strong job growth in the public sector as unsustainable because the government is likely to come under pressure to meet its budget deficit targets, particularly against a backdrop of a weaker-than-expected growth environment," Barclays Capital said.

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