Jobs: these three sectors are in decline
An analysis of online job boards and corporate career sites by recruitment technology company Simplify.hr shows that although there’s an overall 10% increase in available jobs compared with 2020, there seem to be fewer jobs in education, hospitality and finance.
The employment arena is dynamic. Throw in a pandemic, geopolitical instability and rising costs of living and the result is a landscape that, while proving far more resilient in some areas than we dared hope for, is also showing a direct correlation between employment opportunities and the behavioural changes resulting from the current reality.
Education
A report by Unesco shows the pandemic has forced a massive shift away from learning and teaching in traditional settings with physical interaction. The emergence of many more options for online or home-schooling since Covid-19, including the UCT Online High School, bears testimony to this. Figures indicate a fall of no less than 35% (end-February 2022 from end-February 2020) in available job stock across the sector.
Hospitality
Although the Hospitality Global Market Report 2022 indicates the world hospitality market is expected to grow from $3,952-billion in 2021 to $4,548-billion in 2022, at a compound annual growth rate of 15.1%, local figures indicate a consistent monthly decline in available jobs.
Recent statistics for hospitality show a decrease of 32% and 28% at the end of January and February 2022 respectively compared with 2020. Leisure dropped by 41% and 39% for the same periods.
One of the strictest Covid-19 lockdown regulations worldwide, with a total shutdown of large sectors of South African economy for months on end – including a protracted ban on the sale of alcohol – severely crippled the local hospitality and leisure industry.
As the world continues to “open up” and travel makes a resurgence, there are hopes for a positive impact on SA’s hospitality and leisure industry, yielding job opportunities.
Finance
South Africa’s finance industry, traditionally one of the largest sectors for employment opportunities, has shown either flat or negative growth. A relatively small decrease of 3% in job stock (February 2022 versus February 2020) is nevertheless surprising, with this sector responsible for 15% of available job stock across all sectors (January 2019 to end-February 2022).
Key finance and banking jobs have been lost to overseas in recent years. The exodus of these jobs and skills could, in part, be responsible. Although this loss may help create skills-development opportunities and new career paths, the concern remains that there are simply not enough experienced professionals to help bridge the skills gap.
The job market, as with countless other markets, is chiefly driven by supply and demand. Any impact on an industry that changes the dynamics of a sector will have a direct knock-on effect on available job stock.
As we begin to move beyond the crushing impact of the pandemic, the role of the government and the private sector is clear: we need a stable and functioning environment conducive to building both business and investor confidence that, in turn, encourages private-sector investment and growth. The natural result will be increased employment opportunities and available job stock across all sectors of our economy.