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Employment to rise in mining industry

8th November 2013

By: Zandile Mavuso

Creamer Media Senior Deputy Editor: Features

  

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The mining, quarrying and agri-culture sectors are expected to be South Africa’s stongest employment prospects as South African employers are optimistic for the fourth quarter of 2013, says international workplace solutions company Manpower Group’s Manpower Employment Outlook Survey for the fourth quarter of 2013.

“Nationally, employers expect some opportunities for job seekers this quarter as South Africa’s seasonally adjusted Net Employment Outlook stands at over 5%. The outlook has now climbed steadily for four consecutive quarters and is now 4% stronger than the third-quarter forecast and 6% stronger year-over-year,” says Manpower South Africa MD Lyndy van Barselaar.

She adds that of the 750 South African employers who participated in the fourth-quarter research, 11% expect to increase staff- ing levels, 6% forecast a decrease and 82% expect no change to current payrolls.

Manpower South Africa states that although South Africa’s outlook is affected both by national concerns, such as unrest in and pressure on certain industries and international sluggishness, with Europe as one of South Africa’s chief export destinations, trade and industrial policies encourage local firms to explore new areas of growth based on improved competitiveness.

“China, India and Brazil offer significant opportunities, while, infrastructure, mining, finance and retail developments across Africa are helping to fuel a growth trajectory in which South Africa can participate,” she points out.

Regional Comparisons
Employers in Gauteng, the Eastern Cape, the Western Cape, KwaZulu-Natal and the Free State foresee payroll gains in the forthcoming quarter. Cautiously optimistic net employment outlooks of 9% are reported in both the Eastern Cape and the Western Cape, and modest hiring opportunities are expected in Gauteng where the outlook stands at 5%. Some workforce gains are forecast in KwaZulu-Natal and the Free State, with outlooks of 3% and 2% respectively, highlights Manpower South Africa.

“Positive outlooks in the provinces could be attributed to the commitment from provincial governments to strengthen the country’s drive to overcome the shortage of suitable, skilled labour, thereby contributing to higher levels of economic growth and employment and addressing poverty and inequality,” she continues.

The company notes that quarter-over-quarter, hiring plans strengthened in all five of its surveyed regions. Employers report improvements of 9 per- centage points in the Eastern Cape and 8 per- centage points in the Western Cape. Else- where, the outlook strengthens by 3 percent-age points.

Hiring prospects improve in four of the five regions when compared with the fourth quarter of 2012. The most noteworthy improvements of 11% and 10% are reported in the Western Cape and the Eastern Cape respectively. Employers in KwaZulu-Natal report an outlook increase of 7% and hiring plans are 3% stronger in Gauteng. However, hiring intentions weaken by 3 percentage points in the Free State.

“The economy of the Free State province has historically been carried mainly by two sectors, agriculture and mining, with the latter providing the greatest proportion of jobs. “The developing economy of the province has since seen its structure shadow that of the national economy. “Sectors like manufacturing and services have begun to be more noticeable in the labour market, possibly responsible for fuelling the need for more labour,” points out Van Barselaar.

Industry Forecasts
Meanwhile, employers in seven of the ten industry sectors anticipate growing payrolls during the fourth quarter. The most positive hiring intentions are reported in the agriculture, hunting, forestry and fishing sector, and the mining and quarrying sector, where employers in both report outlooks of more than 12%.

“Contrary to perceptions that mining pay and conditions are poor, the International Council on Mining and Metals found that mining is a relatively attractive form of employment. “According to the council’s case study interviews, mining is seen as better paid and offering more fringe benefits, including housing, education and healthcare.

“These results and the fact that the Chamber of Mines announced its plans to create 20 000 jobs by 2020 all play a part in the anticipated growth of this sector. Another indicator that the mining and construction sectors may experience further growth is the increased attention paid by international business to South Africa, where the intention is often to use South Africa as a platform for investment into Africa. This is borne out in the announcement by the bauma Africa trade fair that it attracted 49 countries and over 700 local and international exhibitors, promoting business specifically in the South African Development Community mining and construction sectors,” she concludes.

Edited by Samantha Herbst
Creamer Media Deputy Editor

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