Employees in South Africa are currently experiencing the lowest level of employee confidence in two years. This is according to the trade union Solidarity’s first quarterly Labour Market Index (in conjunction with ETM Analytics) for 2015 that was released today.

The Solidarity Employee Confidence Index (ECI) for the quarter fell sharply, reaching an all-time low of 30,7 in Q1,  from an upwardly revised figure of 43,5 the prior quarter.

According to Piet le Roux, Head of the Solidarity Research Institute, the lower level of job security probably relates to the Eskom power crisis and it especially corresponds with uncertainty in the mining sector. “The widespread scheduled power outages of the first quarter have tangibly focused employees’ attention on the risks in the local economy. In addition, they are experiencing it amid mounting talks of retrenchments, especially in the mining sector, as the likes of Anglo Platinum restructure their business operations in the aim of staying profitable,” Le Roux said.

In addition, the overall Job Security Index (JSI), to which the ECI contributes one third, fell in the first quarter of 2015 (Q1 2015) from an upwardly revised figure of 44,6 in Q4 2014 to 43,5. “At present levels the index reflects conditions where there is slow or no real wage growth on aggregate, and where some sectors continue to see retrenchments,” Le Roux said.

A reading of 50 on this index indicates neutral job and wage security.

“It is important to note that the index has displayed these poor employment conditions since the end of 2007, with the exception of the period from Q2 2010 to Q1 2011, where the index averaged 52,7,” Le Roux added.

The index, compiled in conjunction with the market strategists ETM Analytics, is a measure of job and wage security in South Africa.

The index is attached, with the table of contents of a special Labour Market Report which lifts the veil on the true tax burden in South Africa. The full publication will be released on Tuesday, 19 May, at a brief seminar. Members of the media are invited to the event.

Date: Tuesday, 19 May 2015
Time: 08:00 for 08:30
Venue: Kremetart Boardroom, Solidarity Head Office, cnr D.F. Malan and Eendracht Streets, Kloofsig, Centurion.

Please confirm your attendance of the event with Inge Strydom: inge.strydom@solidariteit.co.za.

Piet le Roux
Head: Solidarity Research Institute
Cell: 082 556 3405