Today's Labour News

newsThis news aggregator site highlights South African labour news from a wide range of internet and print sources. Each posting has a synopsis of the source article, together with a link or reference to the original. Postings cover the range of labour related matters from industrial relations to generalist human resources.

employment thumb100 The Citizen reports that SA may not be able to achieve its employment target as set out in its Industrial Policy Action Plan (Ipap), due to slow growth in manufacturing.  

According to David Kaplan, professor emeritus at the School of Economics, University of Cape Town, the decline in manufacturing employment has arisen not only because of the slow rate of manufacturing growth, but because the employment intensity – the number of jobs per unit of output – is low or declining.  Despite the declared objective of Ipap to create an additional 350,000 manufacturing jobs by 2020, manufacturing employment has fallen by 32,000 jobs from its 2008 figure, with manufacturing output still below that of 2008.  In contrast, emerging markets overall have increased manufacturing output by some 50%.  In a paper published by the Centre for Development and Enterprise (CDE), Kaplan argues that while the declining employment intensity of growth is not confined to SA, it is far more pronounced here.  SA’s manufactured exports have grown far slower than its peers and manufactured exports are well below potential, Kaplan points out.  The country’s labour market flexibility is low and its costs of labour, including the costs of hiring and firing, are increasing.  Moreover, the national minimum wage will result in significant cost increases, particularly for labour-intensive firms.

  • Read the full original of the above report by Eric Naki at The Citizen

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