Weekly SETA & Educational Updates – South Africa Community
These are the job sectors hiring the most workers in South Africa right now
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The ManPowerGroup has released its employment outlook for Q4 2017, with the results showing that employers across South Africa plan to hire more within the coming months.

According to the report, 10% of employers expect to increase staffing levels, with the overall outlook standing at +5%, when adjusting for seasonal shifts.

Hiring prospects remain relatively stable when compared with the previous quarter, but are expected to decline by 4% when compared with the final quarter of 2016.

“As South Africa’s economy continues to struggle, market uncertainty perseveres and business and consumer confidence remains low, resulting in many businesses remaining cautious in their spending and hiring activity,” said Lyndy van den Barselaar, MD of ManpowerGroup SA.

South Africa’s holiday season often results in an uptake in business across many key industries, predominantly in hospitality and transportation services, which could account for the small increase (up a single percentage point compared to Q3 2017) in the number of employers looking to increase their staffing levels.

“This is supported by the finding that employers in the Western Cape, a primary destination for local and international tourists over the December – February period, are reporting the strongest hiring intentions,” she said.


Sector Comparisons

Employers in eight of the 10 industry sectors expect to grow staffing levels during the next three months.

The strongest labour markets are anticipated in two sectors with net employment outlooks of +11% − the restaurants & hotels sector and the transport, storage & communication sector.

Electricity, gas & water supply sector employers also report cautiously optimistic hiring intentions with an outlook of +10%, while some payroll gains are expected in the finance, insurance, real estate & business services sector and the manufacturing sector, where employers report outlooks of +8% and +7%, respectively.

However, employment levels are forecast to decline in two sectors, most notably by mining & quarrying sector employers who report an outlook of -4%.

“The expected gains in the restaurants & hotels sector and the transport, storage & communication sector make sense ahead of the upcoming holiday season, where restaurants, hotels and transport systems will welcome many guests from South Africa and abroad,” said van den Barselaar.

Hiring

The first percentage indicates hiring rates over the next three months. The second percentage shows hiring trends over the past year.

  • Construction: +5 (+5)%
  • Electricity, gas and water: +6 (+10)%
  • Finance, insurance and business services: +6 (+8)%
  • Manufacturing: +6 (+7)%
  • Public and social: +2 (+3)%
  • Restaurants and hotels: +12 (+11)%
  • Transports, storage, and communication +12 (+11)%
  • Wholesale and retail trade +4 (+4)%

Not Hiring

  • Agriculture, Hunting, Forestry & Fishing 0 (-1)%
  • Mining and quarrying –2 (-4)%

Regional Comparisons

Employers in all five major economic regions expect to increase staffing levels during the next three months, when adjusted for seasonal shifts.

The strongest labour market is anticipated in Western Cape, where employers report a net employment outlook of +7%.

Modest payroll gains are expected in both Gauteng and KwaZulu Natal, with outlooks of +5%, while the outlook for Free State stands at +4%. Meanwhile, Eastern Cape employers report the most cautious outlook of +1%.

“The Western Cape, specifically Cape Town and the surrounding winelands, continues to be one of the world’s most popular tourist destinations, for both local and international visitors. The City of Cape Town has recently agreed to extend Cape Town Tourism’s service level agreement for another year.

“The expansion of the partnership, which has already led to extensive collaborative projects within the areas of responsible tourism, visitor safety, and counteracting seasonality, is expected to produce tangible benefits for the local tourism  industry and the city alike – especially prevalent ahead of the holiday season.

“The expected influx of tourists means that many businesses will be in preparation mode, which may include planning to hire more staff,” said van den Barselaar.

Quarter-over-quarter, hiring prospects improve by three percentage points in Free State, but decline by two percentage points in KwaZulu Natal.

Elsewhere, employers report no change in both Eastern Cape and Gauteng, while the outlook for Western Cape remains relatively stable.

This article was first published on businesstech.co.za