DURBAN IS TOPS FOR JOB CREATION
IF YOU’RE unemployed you're most likely to find a job in Durban, according to the quarterly Labour Force Survey for the second quarter released by Statistics SA last week.
The City of eThekwini’s official unemployment rate, recorded at 16.5%, left Johannesburg and Cape Town lagging behind at 26.2% and 22.6% respectively.
The metro council that recorded the highest unemployment rate was Nelson Mandela Bay with 33.2%.
The survey showed that the number of employed people in SA increased by 198 000 while unemployment declined by 305 000 on a quarterly basis.
The increase in employment was recorded in the community and social services sector, in construction and trade industries.
Sectors like finance, manufacturing and agriculture shed jobs.
Loane Sharp, a labour economist at the Free Market Foundation, said for years Durban was the “ugly sister ” of SA’s major cities, with companies preferring to do business in Johannesburg or Cape Town.
“Depressed house prices reduced household wealth. Infrastructure bottlenecks reduced business investment. Chaotic public services led to poor business confidence. And policing was atrocious, particularly in the CBD and outlying suburbs.
“On the whole, the broader eThekwini economy was heavily reliant on manufacturing goods and transporting them to Gauteng. But Durban’s labour market fundamentals remained good despite these negative factors, ” Sharp said.
“Matric performance was better than average, particularly in English and mathematics. Attractive wage and benefit levels helped businesses to set up new operations or expand existing ones. As a result, Durban was one of the best kept secrets among South African investment destinations.”
Sharp said this had now changed significantly.
“Blue chip companies are increasingly basing operations there, and small-scale businesses are thriving. Considering that 81% of eThekwini’s small business owners are black, and that 91% of employment in the area occurs in small or medium enterprises.
“Durban has staged something of a comeback and is an example for the rest of the economy to follow.”
The eThekwini municipality said the creation of jobs is a result of its sector development programme.