Employees in the South African labour market have little to no prospect for higher than usual salary increases and can expect retrenchments in some sectors. These findings emerge from the Solidarity-ETM Labour Market Index (LMI) which remains in deteriorating territory, despite a small pick-up in the third quarter this year.
The LMI displays an improvement from 39,5 in the second quarter to 41,7 in the third quarter this year, but the break-even level between rising and falling wage and job security is only to be found at 50.
According to Piet le Roux, senior economics researcher at the Solidarity Research Institute, the component for employee confidence in the LMI in the third quarter increased to 39,3 from 33,7 in the third quarter. He points out that the percentage of employees who indicated more than satisfactory job security increased from 47% to 52% in the third quarter.
“In the third quarter the component for employee confidence recovered slightly, probably reflecting the end of the debilitating strikes in the mining and metal industries. However, the index shows that South Africans are caught up in the prolonged deteriorating labour market, which has remained below 50 since early 2008, with only weak signs of recovery since then,” Le Roux explains.
The LMI is released as part of the South African Labour Market Report that is compiled by trade union Solidarity in collaboration with market strategists ETM Analytics. Other topics covered in the Labour Market Report are:
Thomas Piketty’s Capital in the Twenty-First Century and South Africa
The Constitutional Court judgment in the Renate Barnard case and its implications
Inflation as an enemy of the working class
The fallacy of the “wage price spiral”
A macro-overview of the South African economy
Click here to view the Solidarity Research Institute’s Labour Market Report for October to December 2014.