The employee confidence component of the Solidarity-ETM Labour Market Index (LMI) fell to 45,7 in the first quarter of 2014 from a level of 46,5 in the last quarter of 2013. This information is contained in the March–June issue of the South African Labour Market Report, released by trade union Solidarity in collaboration with market strategists ETM Analytics.
The LMI, which includes measures of labour affordability and business cycle movements in addition to the employee confidence component, showed a marginal improvement overall by increasing form 44,9 to 45,5 in the first quarter of 2014. A value of 50,0 is the threshold level between rising and falling wage and job security.
According to Piet le Roux, senior economics researcher, the decline in the employee confidence component points to employees’ experience of a tough labour market. “The sustained score below 50 for each of the index’s separate components as well as the index as a whole means that job security in South Africa is exhibiting a worsening trend. The index has been below 50 for a prolonged period. In the first quarter of 2013, for example, the index was just 46,1 and has been below 50 in all quarters except the second quarter of 2011.”
Other topics dealt with in this issue of the South African Labour Market Report include:
The reasons for the prolonged Amcu strike;
SA’s small tax base, where just one out of ten adults pays significant tax;
the extent of racial transformation in the public service;
a review of the South African economy; and
an examination of the workings of the business cycle.
Clickhereto view the Solidarity Research Instiitute’s Labour Market Report: April to June 2014.