JSE-listed Adcorp’s latest employment index released on Thursday showed that employment rose slightly by 0,9% in January, compared to the previous month.

However, all sectors of the South African economy showed a decline in employment for the month, except for an 8,8% rise in community and social services employment, which is mainly driven by government.

CEO Richard Pike said that the country’s construction industry was the hardest hit with employment falling by 6,6%. Moderate job losses also occurred in the financial services and wholesale and retail trade sectors, with the index falling by 3,7% and 3,6% respectively.

Statistics South Africa’s employment survey, released on Tuesday, showed that 157 000 jobs were gained during the fourth quarter of 2010, of which 148 000 were in the community and social services sector.

Economists Mike Schussler and Azar Jammine said that while the drive from government to create employment was good for people’s quality of life, it was unsustainable as it was further exasperating South African taxpayers.

LABOUR LAW AMENDMENTS

Meanwhile, Pike warned that a recent scenario done by Adcorp showed that the labour law amendments, as was proposed by the Minister of Labour Mildred Oliphant in December, would results in more than a million jobs being lost.

The proposed labour law amendments relate to the Labour Relations Act, the Basic Conditions of Employment Act, the Employment Equity Act and the Immigration Act. In addition, the Employment Services Bill had been introduced, which would extensively regulate the labour broker industry and those making use of brokers, once enacted.

“Ironically, the proposed labour law amendments will represent the most significant ‘informalisation’ of the economy since the Labour Relations Act of 1995,” commented Pike.