Friday, March 20, 2009

South Africa fairly well positioned to handle a short Recession

Turning to salary predictions for this year, 91% of businesses in South Africa had indicated that they intended to increase salaries in line with inflation or above, compared to the global average of 64%. In South Africa, only seven percent of businesses expect to reduce pay or offer no increases over the next 12 months.

NVDL: The bad news we already have chronic levels of crime, povery and unemployment. A recession will worsen all of these, and I personally predict that we won't see a real recovery in 2009, but will see a steady decline in our fortunes and those of the world. Unfortunately there is very little acceptance let alone 'adaptation' to the new set of circumstances, which does little if anything to improve our fortunes.
EMPLOYMENT growth in South Africa is steadily declining but the country remains better off than many others, consulting company Grant Thornton said today.

"There are clear signs of a slow-down in our economy," said Grant Thornton national chairman Leonard Brehm.

"Unfortunately employment growth in these sectors is not big enough to make a dent in our unemployment numbers." A sector analysis revealed that 23% of the retail sector and 22% of the manufacturing sector decreased employee numbers in the past year.

Twenty five percent of the retail sector and 13% of the manufacturing sector increased employee numbers compared to 37% for the construction sector and 40% for the services sector. Looking ahead, the index found that 29% of businesses in the country intended to increase their staff complement in the next 12 months.

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