SA sees 7% employment growth

Johannesburg - Auditing and consulting services firm Grant Thornton reported a 7% growth in South Africa's employment rate in its 2007 annual Employment Growth Index (EGI).
The index tracks medium to large privately held businesses and is conducted in all countries where Grant Thornton does business.
The EGI forms part of the annual Grant Thornton International Business Report (IBR) survey.
Towards the end of 2006, the IBR was conducted amongst medium to large privately held businesses in 32 countries covering more than 7 200 respondents.
In South Africa, Research Surveys conducted research among 200 privately held businesses, employing between 100 and 400 people.
The survey, which Grant Thornton released early this year, found that crime was "a major problem facing business" in South Africa as it affected 84% of businesses surveyed.
Construction sector main contributor
The EGI is determined by calculating the difference between increases and decreases in employment reported by the privately held businesses surveyed.
Grant Thornton said in a statement the 7% growth was 4 percentage points up on last year's EGI which "only reflected a 3% growth as a result of hampered employment growth within the manufacturing sector." EGI 2005 showed a 6% year-on-year growth in employment in South Africa.
"The survey reveals that 62% of privately held businesses in South Africa have increased their staff complement over the past twelve months," said Grant Thornton.
This was higher than the 57% global average. Grant Thornton said 12% of SA respondents reported a decrease in employment while the figure was 13% internationally.
"Those (SA) businesses that increased employment reported, on average, that they had 14% more employees. Those that cut staff lost an average of 11%. Overall there was a 7% increase in employment."
The main contributor sector in South Africa was the construction sector, which reported significant employment growth of 13%, up from 11% in 2006. The sector reported an increase for the second year in a row. The manufacturing sector reported a 5% year-on-year growth in 2007, after a 3% decline in employment growth in 2006.
'Best news we could ask for'
"The services and retail sectors reported year-on-year employment growth of 8% and 4% respectively. In 2006 the services sector reported a 6% growth and retail 5%," said the statement.
"Growth in employment is the best news we could ask for," says Grant Thornton South Africa chairperson, Leonard Brehm. "It appears that we are well past the years of jobless growth. Prospects for the next year are excellent as well."
Brehm said 53% of all South African respondents said they expected to increase their staff complement in the next year. However, the number was lower than India, the Philippines and Armenia.
In India, 80% of respondents said they expected to increase their staff compliment in 2008. Seventy percent of respondents in the Philippines and 67% in Armenia (both new comers to the survey) said they also expected growth.
The Grant Thornton's International Business Report (IBR) is in its fifth year. It researches the opinions and expectations of privately held businesses internationally.
The majority of respondents remain the same size as in previous years, ensuring that the five years of trend data remain relevant both internationally and in South Africa.