SA private business records 6% employment growth
Thématique :
sud afrique
SA Good News, 17 June 2008
Grant Thornton’s Employment Growth Index (EGI) has reflected a 6% year-on-year growth in employment among medium to large privately held businesses in South Africa.
The EGI, which is part of Grant Thornton’s International Business Report, measures the absolute increases and decreases in employment, as reported by the privately held businesses surveyed.
The recorded growth signifies a one percentage point drop from last year’s EGI which reflected 7% growth but a significant improvement from 2006 when South Africa’s EGI showed a 3% annual growth in employment.
“Despite increased inflation, the impact of high crime levels and the shortage of skilled employees, South Africa’s employment growth index has only dropped by one percentage point from 2007," said Lee-Anne Bac, Director of Grant Thornton Strategic Solutions. "Sustained growth in employment is good news as privately held businesses rely on their employees to remain competitive and profitable during tough economic conditions” she adds.
A sector analysis revealed that South Africa’s services and retail sector reported employment growth of 9% and 5% respectively. In 2007, the services sector reported growth of 8% and the retail sector 4%.
The construction sector’s employment increased 8% in the latest index, lower than last year’s 13% growth. The manufacturing sector reported 4% growth compared to 5% last year
58% percent of privately held businesses in South Africa have increased their staff complement over the past 12 months.
Bac adds: “Our research has found that business optimism in medium to large privately held businesses in South Africa is waning slightly. We also know that the lack of a skilled workforce is the biggest constraint to business growth in this sector.
"Linking these findings to South Africa’s slight reduction in employment growth this year, we can deduce that the lack of a skilled workforce as well as a slight reduction in business optimism may well be impacting on job creation.
Grant Thornton’s Employment Growth Index (EGI) has reflected a 6% year-on-year growth in employment among medium to large privately held businesses in South Africa.
The EGI, which is part of Grant Thornton’s International Business Report, measures the absolute increases and decreases in employment, as reported by the privately held businesses surveyed.
The recorded growth signifies a one percentage point drop from last year’s EGI which reflected 7% growth but a significant improvement from 2006 when South Africa’s EGI showed a 3% annual growth in employment.
“Despite increased inflation, the impact of high crime levels and the shortage of skilled employees, South Africa’s employment growth index has only dropped by one percentage point from 2007," said Lee-Anne Bac, Director of Grant Thornton Strategic Solutions. "Sustained growth in employment is good news as privately held businesses rely on their employees to remain competitive and profitable during tough economic conditions” she adds.
A sector analysis revealed that South Africa’s services and retail sector reported employment growth of 9% and 5% respectively. In 2007, the services sector reported growth of 8% and the retail sector 4%.
The construction sector’s employment increased 8% in the latest index, lower than last year’s 13% growth. The manufacturing sector reported 4% growth compared to 5% last year
58% percent of privately held businesses in South Africa have increased their staff complement over the past 12 months.
Bac adds: “Our research has found that business optimism in medium to large privately held businesses in South Africa is waning slightly. We also know that the lack of a skilled workforce is the biggest constraint to business growth in this sector.
"Linking these findings to South Africa’s slight reduction in employment growth this year, we can deduce that the lack of a skilled workforce as well as a slight reduction in business optimism may well be impacting on job creation.
