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We invite your news releases and announcements, Write Now ! Mailto:africa@dowco.com Important Links for Information on Booking Travel to
South Africa South African National Department of Environmental
Affairs and Tourism - www.deat.gov.za South African Tourism - www.southafrica.net South African National Parks - www.sanparks.org International Marketing Council -
www.sanparks.org.za Edwin Sipho Rihlamvu Tourism International Liaison DEPARTMENT OF ENVIRONMENTAL AFFAIRS AND TOURISM SOUTH
AFRICA Tel: 27 (12) 310 3940, Fax: 27 (12) 322 5754 Mobile: 073 902 4504 E-mail: erihlamvu@deat.gov.za South Africa: Strong growth create 90,000 jobs Business Day (South Africa), by Kevin O'grady March 29, 2006 Slow and steady job creation continued in the fourth
quarter of last year, Statistics SA's latest quarterly
employment statistics show, with an additional 90000 people
finding employment in the formal, nonfarming sectors of the
economy. The 1,3% increase from the previous quarter comes on the
back of strong economic growth last year and is good news as
government strives to bring down the 26,7% unemployment
rate. It was slightly higher than the 1,2% increase recorded in
the third quarter. However, it is not yet clear how much of the increase was
seasonal in nature as some sectors, such as retail, hotels
and restaurants and security, hire large numbers of casual
workers in the run-up to and during the festive season. Only
when the figures for the first quarter of this year are
released will it become clear how many of these jobs were
retained. The statistics are derived from a survey of 24000
businesses that are registered as taxpayers, as opposed to
the more extensive Labour Force Survey, which is conducted
among 30000 households every six months and provides the
official unemployment rate. The latest figures brought the increase in jobs last year
to 2,2% -- or 158000 new positions from the end of 2004,
which bodes well for the hoped-for improvement in the
unemployment rate. But last year's 4,9% growth in gross domestic product
(GDP) might actually work against reducing unemployment. As the economy grows strongly, more discouraged job
seekers start actively looking for jobs, swelling the ranks
of the unemployed in terms of the official definition, which
excludes discouraged work seekers. This happened in the year to last September, when the
Labour Force Survey showed 658000 jobs were created but the
unemployment rate rose to 26,7% from 26,2%. This was because
the new jobs failed to keep pace with entrants to the job
market, including about 636000 previously discouraged work
seekers. Economists welcomed the rise in formal-sector employment
yesterday, saying it was an indication of how well the
economy was performing. However, the manufacturing and
mining sectors, which have been hurt by the relatively
strong rand, were cause for concern. The Stats SA figures show the mining sector shed 10000
jobs (2,3%) in the fourth quarter and ended the year with
22000 (4,8%) fewer jobs than at the beginning. The manufacturing sector hired 10000 (0,8%) more people
in the final quarter and 21000 (1,8%) during the course of
the year, but Standard Bank economist Rashika Lalla pointed
out that other survey data pointed to a likely decline in
employment in manufacturing in the first six months of this
year. The Investec Purchasing Managers Index, a leading
indicator of manufacturing activity, has shown a contraction
in the sector in the first two months of this year. The biggest job creator in the fourth quarter, Stats SA
reveals, was the wholesale and retail trade and hotels and
restaurant sector, which created 50000 jobs, an increase of
3,6% compared with the previous quarter. Construction added
11000 jobs (2,5%), while the financial, real estate and
business services sector created 30000 positions, an
increase of 2%. "It's very encouraging and confirms how good things are
going in this economy," said African Harvest Fund Managers
economist Adenaan Hardien.
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