Engineering News reports that the Solidarity-ETM Labour Market Index (LMI) improved strongly to 47.8 index points in the first quarter of this year, compared with the fourth quarter of 2016’s revised 42.2 index points.  

“This is the best level we have seen since the third quarter in 2013 and is indicative of relatively friendlier labour conditions after a lengthy period of declining security,” Solidarity economics researcher Gerhard van Onselen said on Monday.  But, the index remained below 50, indicating that job and wage security were broadly declining, though at a slower pace.  Van Onselen commented that it remained to be seen whether the improvement in the LMI could be sustained in the following quarters.  He noted as well that the present dilemma was that cyclical improvements in business cycle indicators in the first quarter, and a decrease in job insecurity, as measured by Solidarity Employee Confidence Index, could not overcome the stagnating conditions of the SA economy to avoid an official recession.  “This leads us to conclude that structural economic weaknesses arising from political uncertainty and a harmful antibusiness policy environment are presently weighing more than cyclical improvements,” Van Onselen observed.

• Based on a report at Engineering News

Read Solidarity’s press statement in this regard at Politicsweb

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