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Employment grows by 5,6%

THE Adcorp Monthly Employment Index revealed yesterday that employment grew by 5,6percent during the month of March, indicating a substantial growth in temporary employment.

Adcorp CEO Richard Pike said this (increase) was the first time in "well over two-and-half years that all sectors, occupations and employment types recorded positive growth".

Highest employment growth rates included agency employment at 9,9percent, transport at 18,3percent, electricity at 13,6percent, mining at 11,5percent, agriculture at 11,8percent, professional services at 10,8percent and machine operator occupations at 10,4percent.

Employment in the official sector grew 7,3percent, while in the unofficial sector it grew by 2percent. Temporary work grew by 3,7percent during the month, while non-agency temporary work declined.

"This is the first time since January 2006 that the formal sector drew workers out of informal employment," said Pike.

He said the group was encouraged that more people in South Africa have work.

But he cautioned against a "euphoric" reaction, saying "it is important to bear in mind that South Africa's employment growth over the past decade and more has been of a temporary nature".

"This is in line with international trends, and South Africans still need a shift in mindset around the notions of temporary and permanent employment," he said.

"Since January 2000, traditional permanent employment declined by 20,9percent and temporary, contract and other forms of 'atypical' employment increased by 64,1percent. Respectively, these percentages translate to 1,9million and 2,4million people," said Pike.

"Clearly, there is nothing temporary about temporary employment, except in the limited sense that a particular temporary job may not last permanently or indefinitely," he added.

Pike said that temporary work provided a much-needed stop-gap for people entering and exiting the permanent job market such as youths, working mothers and unskilled and inexperienced job-seekers.

"Temporary work is a natural business response to technological innovations in the workplace such as 26/7 operations (which give rise to shift work), management of peaks and troughs in business volumes (which gives rise to part-time work), and integrated supply chains, which give rise to cross-sector opportunities," Pike said.

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