Good news for property in latest employment stats

There’s a direct correlation between job creation and higher home ownership levels, which is why the latest employment statistics are cause for some end-of-year cheer in the real estate market.

So says Berry Everitt, CEO of the Chas Everitt International property group, who notes that according to the authoritative Adcorp Employment Index, employment in SA increased by an annualised 2,83% in October, following a depressing 1,2% decline in September.

“Some of this increase is no doubt due to a seasonal increase in staffing levels ahead of the forthcoming holidays, as Adcorp points out, but another set of stats provides hope that at least some of the new jobs will be permanent,” he says.

“These come from a survey conducted by the SA Recruiters Network, an online network environment for recruitment and human-resource professionals around the country, in which 77% of respondents said they were currently appointing new staff, and more than 30% said they were looking to fill at least 100 positions during the next financial year.”

And, says Everitt, there has been more good news on jobs in the past month, when Government specifically committed to prioritising employment creation in all economic policies in order to reduce the unemployment rate from 25% to 15% over the next 10 years.

Writing in the Property Signposts newsletter, he says the plan, detailed to the economic development committee of the National Assembly by Economic Development Minister Ebrahim Patel, aims to unlock “employment potential” in infrastructure, agriculture, mining, the green economy, manufacturing and tourism, as well as in high-level service industries.

“It also includes welcome initiatives to promote competition and better pricing of consumer goods and basic construction and agricultural inputs; to cut wasteful spending and tackle corruption in government; to achieving a new pact between business and labour in order to save and create jobs, and to substantially step up government support for skills development.

“This is very encouraging and we feel sure that it will have a positive impact on housing demand as it is rolled out.”

Article by: www.chaseveritt.co.za