-

      Hiring Forecast for 2020 in South Africa 

The ManpowerGroup has published its latest employment outlook survey, showing that South African employers have ‘soft’ hiring intentions in Q1 2020.
The group’s data shows that while 10% of employers forecast an increase in payrolls, 8% anticipate a decrease and 81% expect to make no changes.

Once the data is adjusted to allow for seasonal variation, the outlook stands at +2%, and is the weakest reported in more than five years.
Hiring plans remain relatively stable when compared with the previous quarter, but declined by three percentage points in comparison with the same period last year.
“As we move into the new year, the South African economy continues to be affected by subdued economic growth and a sluggish growth outlook,” said Lyndy van den Barselaar, managing director of ManpowerGroup SA.
“Policy uncertainty and a high unemployment rate remain a deep concern for local businesses who are looking to the new year with caution when it comes to their spending and hiring strategies.”
Who will be hiring?
Employers in six of the 10 industry sectors expect to increase payrolls during the forthcoming quarter.
The strongest hiring pace is forecast in the Finance, Insurance, Real Estate & Business Services sector, where the net employment outlook stands at +9%.
Some hiring opportunities are expected in the Wholesale & Retail Trade sector and the Agriculture, Hunting, Forestry & Fishing sector, with outlooks of +7% and +5%, respectively, while the Restaurants & Hotels sector outlook is +4%.
Meanwhile, employers in three sectors expect to trim payrolls, most notably reflected in outlooks of -9% for the Construction sector and -6% for the Transport, Storage & Communications sector.
“As businesses in South Africa look to digital transformation to shift the way they see and do business, the country moves toward becoming part of the Fourth Industrial Revolution (4IR). These kinds of changes are spurred by the Business Services sector.
“Additionally, as businesses and individuals look to make better financial decisions in a challenging economic climate, the Financial Services and Insurance sectors will become more prevalent. It is possible that these factors are contributing to the expected growth in the sector,” said van den Barselaar.
Hiring sentiment weakens in eight of the 10 industry sectors in a comparison with the final quarter of 2019. Public & Social sector employers report the most noteworthy decline of six percentage points, while outlooks are five and three percentage points weaker in the Construction sector and the Restaurants & Hotels sector, respectively.
Elsewhere, decreases of two percentage points are reported in three sectors ꟷ the Finance, Insurance, Real Estate & Business Services sector, the Manufacturing sector and the Transport, Storage & Communications sector.
However, Wholesale & Retail Trade sector employers report a quarter-over-quarter improvement of 4 percentage points.
Where will they be hiring?
Employers in three of the five regions expect to add to payrolls in the first quarter of 2020.
The strongest labour market is anticipated by Western Cape employers, who report a net employment outlook of +4%. Limited job gains are also forecast in Gauteng and Kwazulu Natal, with Outlooks of +3% and +2%, respectively.
However, Eastern Cape employers report downbeat hiring prospects with an outlook of -5%, while the Free State Outlook stands at -1%.
“The Western Cape government continues to focus on development in the region through several initiatives, such as one initiative that is focusing on diversifying the province’s energy mix through an uptake in sustainable energy sources,” said van den Barselaar.
“This could create employment for those with skills in developing, installing and maintaining these sustainable energy sources such as solar photovoltaic panels, for example.
“Another provincial initiative looks to encourage direct engagement between the  government and the private sector, with sectors such as construction, manufacturing, IT, business process outsourcing and transport participating.
“These kinds of initiatives look to spur growth and promote job growth, which could contribute to the positive outlook for the province in the coming quarter.”
Eastern Cape employers report a considerable decline of 13 percentage points when compared with the previous quarter, and outlooks also weaken by 5 and 3 percentage points in Free State and KwaZulu Natal, respectively.
Elsewhere, hiring prospects remain relatively stable in Gauteng and Western Cape.
Compared to this time one year ago, Eastern Cape employers report a decline of 14 percentage points.
Hiring plans also weaken by 4 percentage points in Gauteng and by 3 percentage points in the Western Cape. Meanwhile, the Outlook for KwaZulu Natal remains relatively stable and Free State employers report no change.



Comments

Post a Comment

Popular posts from this blog

Are you an Opportunistic Candidate?

-
Image
Most candidates that I assist in my career coaching business move into the market with great reluctance. There is an assumption that the experience will be one of pain and entirely unrewarding. Attitude is by far the most significant reason for people failing when looking for work in the market. This fear of impending death by strangulation manifesting itself as a non-opportunistic mindset has one significant drawback - poor career moves. So how do you change this mindset and get yourself into the market with an opportunistic mindset?  When career coaching I push all my candidates to change their attitude radically. These immediate changes include looking at all opportunities in the market, expand your efforts by using different go to market channels, don’t think of the job market as a deep hole with minimal opportunities and the list goes on.  Here are some practical ways to change this bad habit.  Consider many roles - do not be too picky  W...
Read more

Demystifying the job specification

-
Image
One of the vital aspects of any move is your ability to successfully interpret the job specification and for many, this elusive document carries with it information that provides no insight into the vacant role. However, there is a part of the job specification that is always left out and is actually vitally important - who was the incumbent in the role and why did they leave.  (that's if the role is not a new)  I all cases the name of the person is never provided and the reason for that person leaving is also very seldom provided. But why is this an important bit of information that is left out of the process especially for the job seeker? Here are some ways to unearth this key piece of information.  Interview research  When moving into the interview process knowing the background of the incumbent who left the position can provide an absolutely vital piece of the puzzle. This small bit of info can give you a head start in the interview p...
Read more

Attitude! The key to the right career move.

-
Image
Attitude! The key to the right career move.  by Rob Ridout Rob Ridout - CVforLife career coaching CV writer The job market remains a massive black hole for most individuals. So before you are even in the job market, you are tied down with this dark cloud of pessimism, lined with the possibility of a long drawn out process of bleeding through the eyes. Really?  You are going to be moving jobs a few more times in your career lifespan so get your attitude right before it gets the better of you. So there are some basics that I try to teach all my clients when they enter the market.  These principles are critical to your entire employment process. However, some are more efficiently used at the initial part of entering the job market and then other principles focus on the actual engagement process such as interviews all that nasty stuff.  Become the opportunist  Go and read one of my previous articles on this critical subject.  http...
Read more