The Manpower Employment Outlook Survey of local hiring trends released recently reveals that South African employers expect a slight decline in job growth in the upcoming quarter. Once seasonal variations* are removed from the data, South Africa’s Net Employment Outlook stands at a cautiously optimistic +3%.

South African employers forecast positive job growth for the first quarter of 2011 with 13 percent of employers expecting to increase payrolls, 8 percent forecasting a decrease, and 79 percent expecting no change to their payrolls during the coming quarter.

While the first quarter 2011 result is weaker than the fourth-quarter Outlook reported in 2010, hiring intentions are mostly positive. However, the Outlook represents a moderate decline quarter-over-quarter and a more considerable decline year-over-year. Employers in nine of 10 industry sectors and in four of five regions report weaker quarter-over-quarter hiring plans. In a year-over-year comparison, Outlooks are weaker in eight of 10 industry sectors and in three of five regions.

Peter Winn, Manpower South Africa Managing Director comments on the South African Outlook: “We are seeing a softer labour demand. However, rather than a general slowdown in business activity, it appears that our employers are coupling modest optimism with a cautious approach toward expenses and payrolls as we enter the first quarter of 2011. It’s also worth noting that the percentage of South African employers who indicated they would make ‘No Change’ to their staff levels increased from 78% in the third quarter to 83% this quarter. This suggests a measure of stability in the South African labour market with a significant portion of employers indicating they are determined to maintain the talent they have as we work towards recovery.”