FNB predicts ‘significant’ employment gains in longer term
FNB has predicted significant employment gains in the longer term due to gradual improvements in the operating environment.
The prediction comes on the back of the latest employment figures released by Statistic South Africa on Tuesday.
According to the Quarterly Employment Statistics, South Africa’s formal non-agricultural sector showed a glimmer of recovery in the final quarter of 2024.
Employment in the sector rose by 12,000 jobs, reaching 10,64 million by December 2024.
This modest 0.1% increase comes despite a notable year-on-year decline of 91,000 jobs since December 2023.
FNB senior economist Koketso Mano said the importance of infrastructure investments in boosting long-term employment cannot be underestimated.
“What you should also see going forward is that as growth improves and approaches two per cent over the medium term, that should be something that improves the operating environment, and that will speak to real incomes going forward.
“As you see these improvements, that should be something that encourages businesses to invest in capacity, and that will lead to employment creation.”
The latest employment data showed a significant decline in the construction sector, which shed 14,000 full-time jobs.
The community services industry followed with a loss of 12,000 jobs, while the manufacturing sector reduced its workforce by 10,000 jobs.
Meanwhile, the mining industry reported a decline of 3,000 full-time positions.
