S.Africa job market activity increased by 1% 1y/y

The job market in South Africa has shown promising signs of growth, with hiring activity increasing by 1 per cent year-on-year, according to the Pnet Job Market Trends Report. The report revealed that month-on-month local hiring activity was up by 6 per cent from November to December last year. While the trend for the two-year comparison remains low, recruitment activity saw a decrease of 7 per cent compared to December 2022. To provide deeper insights into these trends, CNBC Africa spoke with Paul Byrne, Head of Data Insights at Pnet. Byrne highlighted the volatility witnessed in the employment market throughout the past year, starting slow and picking up before elections, followed by a slowdown during the election period. However, he noted some positive indicators entering the market, such as the recent reduction in interest rates for the third consecutive period. This move is expected to boost consumer spending and, in turn, drive job creation as businesses regain confidence in expanding their workforce. Despite the challenges faced last year, December saw a 6 per cent increase in hiring activity, signaling a positive shift in the job market. Byrne pointed out specific areas that showed significant demand, such as business and management, executive management, and business development. These trends suggest that companies are gearing up to employ more people as they plan for growth in the coming months. Another sector that stood out in the report was warehousing and logistics, indicating potential green shoots in the economy. However, the most notable trend was the spike in demand for pharmacists, with the medical and health sector seeing an increased focus on this profession. Byrne highlighted the challenges faced in filling these roles due to a combination of local growth and international migration of skilled pharmacists. The salary guide section of the report also provided valuable insights into compensation trends across various job sectors. Byrne noted an overall increase in salaries, with certain roles experiencing significant growth compared to previous years. For instance, admin clerks saw a salary increase of up to 71%, while client and customer support roles witnessed a rise of 15% to 22%. The IT sector also saw salary hikes ranging between 7% and 62%, reflecting the ongoing demand for tech specialists. When analyzing regional job trends, Byrne emphasized the dominance of Gauteng in recruitment activity, accounting for 54% of all hires in South Africa. The top in-demand professionals in Gauteng included business and management, finance, and IT roles. Meanwhile, warehouse and logistics recorded an impressive 81% increase in demand year-on-year, driven by the growth of e-commerce and the delivery economy. Looking ahead, Byrne expressed optimism for the job market's trajectory and highlighted the dynamic nature of employment trends, urging stakeholders to monitor these changes closely. With valuable data and insights from the Pnet Job Market Trends Report, South Africa's job market appears to be on a promising growth trajectory, offering hopeful prospects for job seekers and businesses alike.