Today's Labour News

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houseEngineering News reports that around 90,000 formal jobs were lost in the SA construction industry from June 2018 to September 2019, according to construction market intelligence firm Industry Insight.  

CEO Elsie Snyman indicated that employment in the sector currently stood at around 600,000 people.  She added that the likelihood of a turnaround in employment was unlikely considering the direction where the industry was headed.  In fact, Industry Insight expects more job losses, taking account of the trend in January and February.  According to Snyman, the construction industry was under “immense pressure”, with its challenges including poor economic growth; financial constraints within government; late payment by government; a lack of private sector confidence; corruption, which is further eroding funds; underspending of budgets; concerns over whether contacts are awarded to skilled contractors; the slow awarding of contracts, currently at around 12 to 18 months; and the rise of the construction mafia, with some ‘communities’ continuing to violently disrupt construction sites.  A conservative estimate is that 84 projects with a value of R42-billion have been affected by the construction mafia.


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