Job security still in decline

JOB and wage security remained weak in the second quarter of this year, caught up in a declining labour environment that has lasted for almost six years since 2011.

This is according to the quarterly Solidarity ETM Labour Market Index (LMI) compiled by the trade union Solidarity and ETM Analytics which was released on Monday.

The LMI, an index of employee confidence, labour affordability and the ETM Business Cycle Index, has increased marginally from an upwardly revised 41,2 points in the first quarter this year to 42,1 points in the second quarter.

In terms of the LMI, 50 points is the breakeven level between rising and falling job and wage security.

Solidarity Research Institute (SRI) economic researcher, Gerhard van Onselen, said the index indicates continued difficult labour conditions in the country.

‘Although there is some indication that the affordability of labour may have reached a turning point in the cycle, which could bring relief to employees, such a turnaround could only be confirmed in subsequent quarters,’ said Van Onselen.

‘Although the LMI rose slightly in the first quarter, it remains within a six-year downward trend and well below the 50.0 threshold, indicating rapidly rising job and wage insecurity.

‘Both showed a deterioration in hiring conditions as employment declined in a majority of industries over the period.’

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