We suggest that you upgrade to the latest version of any of the following browsers:
close notification
Retrenchment rate declines
| DATE: 16 February 2012 |
Send to Friend
Print
0 Comments
|
|
| BY: Thanduxolo Buti |
The Minister of Social Development, Bathabile Dlamini, revealed a decrease in UIF payments.
According to Business Live, the Minister revealed at a briefing on Tuesday 14 February that the Unemployment Insurance Fund (UIF) paid out R4,7 billion to 590 000 beneficiaries in the first nine months of the current financial year. In 2009/2010 R5,3 billion was paid to 693 000 beneficiaries and the previous year R5,7 billion was paid to 776 004 beneficiaries. In comparison the figures show a decrease in the number of retrenchments since 2009.
The article further quotes labour economist Loane Sharp as saying that retrenchments will never be totally eliminated, but appears to have slowed down since the peak of the recession in 2009. “Even in an economic boom time, we still see retrenchments, as employment opportunities switch from sector to sector,” says Sharp.
Despite the decrease in the number of retrenchments, there are still no major changes in the rate of the country’s job creation. Employment agency Adcorp’s labour index shows a net increase of about 80 000 jobs created in 2011, which is nowhere near the 420 000 jobs that were created in 2007. According to Statistics SA, there has been a decrease in company liquidations in 2011, which may be one of the reasons the retrenchment rate is slowly going down.
