Employment figures take knock

GROWTH in employment has run out of steam despite optimism about the World Cup, the Adcorp Employment Index revealed yesterday.

GROWTH in employment has run out of steam despite optimism about the World Cup, the Adcorp Employment Index revealed yesterday.

The index indicated that the rise in employment petered out in March and April 2010 following five consecutive months of growth.

The index is commissioned by Adcorp, the JSE-listed employment services company, and it is considered an accurate barometer of employment trends.

Adcorp attributed the petering out of employment growth to the low labour intensity of the economic recovery.

Seven of the eight major economic sectors reported little or negative growth in employment in April.

Despite the euphoria and sense of optimism spawned by the World Cup, the index gave a gloomy picture for the past two months.

Over the past year, South Africa's labour intensity fell by 8,1percent, the biggest decline in recorded history. It now takes 36percent fewer workers to produce a given level of output than in 1960.

Adcorp chief Richard Pike said the upward trend until February and March 2010, which showed 0,2percent increase in employment on a month-on-month basis, suddenly froze between March and April. - I-Net Bridge

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