NEWS

Temporary work spurs rise in employment numbers

Adcorp says employment grew at an annualised rate of 2,5% last month, mainly due to a 4% rise in employment by temporary recruitment agencies and a 7,7% increase in employment in the informal sector.

TEMPORARY employment and activity in the informal sector fuelled an overall increase in employment last month, recruitment agency Adcorp ’s survey showed yesterday.

This comes as unions, many affiliated to the Congress of South African Trade Unions, are pushing for a ban on labour brokers. But unions falling under the Federation of Unions of SA, along with business, prefer regulation.

Adcorp, which is involved in recruitment and labour research, has argued that temporary employment can create growth and can be used to track economic progress.

"The upshot is that temporary work follows economic activity fairly closely (correlation 79%), since employers are able to use contract workers for fixed, typically short, durations on an as-needed basis," Loan Sharp, Adcorp’s chief economist, said last month.

Yesterday Adcorp said employment grew at an annualised rate of 2,5% last month, mainly due to a 4% rise in employment by temporary recruitment agencies and a 7,7% increase in employment in the informal sector. All other categories of employment in the monthly index were unchanged.

"Employment dropped sharply in the manufacturing (16,7%), transportation and logistics (9,0%) and construction (4,6%) sectors — representing a loss of 25000 jobs during the month. These losses were offset by employment gains in the government (10,5%), finance (8,2%) and wholesale and retail trade (6,6%) sectors," Mr Sharp said, referring to the formal economy.

Employment of highly skilled and office workers grew by 8,8%, or 48000 jobs, while employment of low- and semi-skilled workers fell by 6,4%, or 26000 jobs, he said.

Mr Sharp said it was important to note that informal employment was rocketing while formal employment was under pressure.

Adcorp claims the informal labour sector represents 32,8% of SA’s potential workforce.

There are roughly 6,2-million informal workers in SA.

"The largest still remains officially recorded employment, numbering about 12,7-million people ... yet SA’s formal labour market is gradually decreasing," he said.

The National Economic Development and Labour Council (Nedlac) met last week to discuss labour law amendment bills, one of which proposed a ban on labour brokering. Nedlac’s business, labour and government representatives have not yet revealed if this has changed.

In July, Labour Minister Mildred Oliphant revealed that the government had set aside R60m to employ additional inspectors to monitor labour brokers and ensure that they adhered to regulations that were being amended.

 

Source: www.businessday.co.za

<back

 



  

 

Copyright © 2004-2015 Africagrowth Institute. All rights reserved