Today's Labour News

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ManufacturingCircleBusinessLive reports that as the manufacturing sector bleeds jobs, factory owners are worried about its future.  This comes as employment statistics released on Tuesday showed that the sector lost 55,000 jobs year-on-year in the second quarter.  

The seasonally adjusted Absa purchasing managers index (PMI), which gauges activity in the manufacturing sector and is usually a good indicator of where the production numbers will head in two months, pointed to a grim view for the rest of 2018.  Unresolved trade disputes between the US and its major trading partners, continued domestic political uncertainty, higher fuel prices and the intermittent return of power interruptions would weigh on business conditions in the manufacturing sector in coming months, said NKC analyst Gerrit van Rooyen.  Manufacturing Circle executive director Philippa Rodseth said:  "We continue to motivate the importance of the sector as a leading contributor to economic growth, but we still have a long way to go and we are not going to see immediate changes overnight."  While still a heavy hitter, the sector has shrunk substantially in recent years.  Since the early 1980s, manufacturing’s contribution to GDP dropped from 24% to less than 13% in 2018.

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