Productivity drops to 50-year low in SA

Employment figures were just one-hundredth of a percent up, with an increase in informal jobs and a decrease in jobs in the formal sector.

The mining and construction sectors reported losses, while improvements were seen in transport and manufacturing.

Mine labour came under heavy scrutiny in recents months, with the killing of 44 people at Lonmin's Marikana  after labour unrest at Lonmin's mine, as well as Anglo American Platinum's announcement that it intended to close two of its shafts in Rustenburg and shed about 14 000 jobs. 

The 12 000 news jobs in the management and professional categories showed that high-skilled jobs created the most employment in February.

Labour’s participation in national income, or wage share, fell to the lowest level in 50 years.

“Wages are the remuneration received by labour; profits and other income is the remuneration received by capital. The implication of the dropped wage share was that South Africa’s profit share rose to a 50-year high,” Adcorp labour economist Loane Sharp said.

According to Sharp, this trend could be attributed to South African companies being in exceptionally good shape. South Africa has the highest real risk-adjusted return on capital in the world at 10%, a recent survey has shown.

On the drastic drop in wages' share of national income, Loane attributed declining labour productivity. “Since records were first started in 1967, South Africa’s labour productivity had fallen to a 46-year low, with most of the decline occurring since 1995.”

Sharp said that radical changes in labour laws since the Labour Relations Act of 1995 presented enormous challenges in terms of dismissal protections and wage escalations.


Court date finally set for death in detention Haffejee inquest

Another apartheid-era death will be investigated after NPA pressured to finally act

State capture commission granted a 13-month extension

Judge Wendy Hughes says this is the final extension because finality is "owed to the nation"

DA’s Moodey joins leadership race

The head of the Democratic Alliance in Gauteng says he wants to take his experience to the national level

Press Releases

South Africa’s education system is broken and unequal, and must be fixed without further delay

The Amnesty International report found that the South African government continues to miss its own education upgrading targets

Business travel industry generates billions

Meetings Africa is ready to take advantage of this lucrative opportunity

Conferences connect people to ideas

The World Expo and Meetings Africa are all about stimulating innovation – and income

SAB Zenzele Kabili B-BBEE share scheme

New scheme to be launched following the biggest B-BBEE FMCG payout in South Africa’s history

TFSAs are the gymnasts of the retirement savings world

The idea is to get South Africans to save, but it's best to do your research first to find out if a TFSA is really suited to your needs

Achieving the litmus test of social relevance

The HSS Awards honours scholarly works based on their social relevance and contribution to the humanities and social sciences

Making sense of tax-free savings and investment

Have you made the most of your tax-free investment contributions?

Response to the report of the independent assessors

VUT welcomes the publishing of the report of the independent assessors to investigate concerns of poor governance, leadership, management, corruption and fraud at the university.