Strike boosted employmentSep 14, 2010 11:27 AM | By Sapa
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An increased use of temporary and contract workers to mitigate the effects
of the public sector strike in August resulted in the first increase in
employment in five months.
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[image: Striking workers.]
Striking workers.
*Photograph by: Tebogo Letsie*

This is according to the latest Adcorp Employment Index released on Tuesday.

Adcorp CEO Richard Pike said the increase in employment during August was
primarily connected with the use of more than 90,000 additional temporary
and contractor workers during the countrywide public service strike.

"Most of these workers (62.5 percent) were employed through temporary
employment agencies rather than directly."

The index increased at an annual rate of 6.8 percent in August as a result.
However permanent employment fell at an annual rate of 2.4 percent during
August, the 18th consecutive monthly decline.

"It remains a real concern that the economy is still shedding jobs. Both
business and government need to find ways to address this continual fall in
employment especially in the manufacturing sector."

Employment increased in the government (+44.2 percent), mining (+7.9
percent) and financial services (+7.4 percent) sectors and fell in all other
sectors.

Reflecting continued weakness in the manufacturing sector, employment of
artisans fell 6.4 percent and machine operators fell 6.7 percent.

Pike said September's index, to be released next month, was particularly
important to watch, since it was a leading indicator of the likely strength
of the year-end holiday season, as employers began to increase temporary
staffing requirements.

"Based on relatively weak consumer and, especially, corporate activity in
the economy at present, it is unlikely that the seasonal year-end peak will
be as marked as it has been in previous years."

This represented a worrying sign for school leavers, for many of whom
temporary assignments during December and January were their first
opportunity to join the workforce, Pike said.

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