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BL Premium reports that according to the latest BankservAfrica’s Take-home Pay Index (BTPI), people earned less in April than a year ago, with the average nominal take-home pay declining 4.2% year-on-year to R14,534 a month from R15,170.
April’s data shows how various factors, including persistently high inflation, interest rate hikes and ongoing load-shedding, added to the pressure on consumers. “The environment remains unfavourable for comfortable wage increases or job creation. Organisations will likely remain in ‘survival model’ for an extended period,” the automated payments clearing house said. Economist Elize Kruger pointed out that taking the eroding effect of inflation on the purchasing power of consumers into account, in real terms the average monthly salary fell by more than one-tenth year-on-year to R13,524. “With little indication of a different economic environment in 2023 and an even lower economic growth forecast for 2023 compared to 2022, the job market and salary adjustments are likely to remain lacklustre for the remainder of the year. This is a scenario that could only exacerbate the unemployment crisis,” she commented. Headline inflation eased slightly to an annual rate of 6.8% in April, offering some reprieve, but the rapid recent depreciation of the rand could “throw a spanner in the works”, Kruger added.
- Read the full original of the report in the above regard by Nico Gous at BusinessLive (subscriber access only)
Get other news reports at the SA Labour News home page