South African employers report soft hiring intentions for the last quarter of the year.
According to the latest ManpowerGroup Employment Outlook Survey, while 10% of employers anticipate an increase in payrolls, 6% expect a decrease and 82% forecast no change.
Once the data is adjusted to allow for seasonal variation, the Outlook stands at +4%.
Hiring prospects are unchanged when compared with the previous quarter but decline by 2 percentage points in comparison with this time one year ago.
“As we move into the last quarter of 2019, South Africa’s economy continues to be weighed down by factors such as slow economic growth, policy uncertainty and a high unemployment rate,” says Lyndy van den Barselaar, MD of ManpowerGroup SA. “This can translate into businesses exercising caution around hiring and spending-related activity, which is reflected in 82% of responding companies expecting to make no change in their hiring strategies during the October to December timeframe.”
Employers expect to add to payrolls in all five regions during the upcoming quarter. Eastern Cape employers forecast the strongest labour market, reporting a Net Employment Outlook of +7%, while Outlooks of +6% and +5% are reported in Kwazulu Natal and Free State, respectively.
Elsewhere, employers expect limited job gains, reporting Outlooks of +3% in Western Cape and +2% in Gauteng.
“There are currently initiatives taking place in the Eastern Cape that are focused on development of the region and that are well placed to create employment,” explains van den Barselaar.
“For example, the Coega Development Corporation, operator of the Coega