The more people employed, the better for homeownership levels
THERE’S a direct cor relation between job creation and higher homeownership levels, which is why the latest employment statistics are cause for some end-of-year cheer in the property market, says Berry Everitt, chief executive of the Chas Everitt Inter national property group.
“According to the Adcorp Employment Index, employment in South Africa increased by an annualised 2,83 percent in October, following a depressing 1.2 percent decline in September. Some of this increase is no doubt due to a seasonal increase in staffing levels before the holidays, as Adcorp points out, but another set of stats provides hope that at least some of the new jobs will be permanent,” he says.
“These come from a survey conducted by the SA Recruiters Network, an online network environment for recruitment and human resource professionals around the country, in which 77 percent of respondents said they are currently appointing new staff, and more than 30 percent said they wanted to fill at least 100 positions during the next financial year.”
And, says Everitt, there has been more good news on jobs in the past month, when the government specifically committed to prioritising employment creation in all economic policies to reduce the unemployment rate from 25 percent to 15 percent over the next 10 years.
Writing in the Property Signposts newsletter, he says the plan, detailed to the economic develop- ment committee of the National Assembly by Economic Development Minister Ebrahim Patel, aims to unlock employment potential in infrastructure, agriculture, mining, the green economy, manufacturing and tourism, and in high-level service industries.
“It includes welcome initiatives to promote competition and better pricing of consumer goods and basic construction and agricultural inputs; to cut wasteful spending and tackle corruption in government; to achieve a new pact between business and labour to save and create jobs, and to substantially step up government support for skills development.
“This is very encouraging and we feel sure that it will have a positive impact on housing demand.”