Gauteng Business 2016 edition

SPECIAL FEATURE
Provincial Government - and it was a move that will surely secure
confidence among South Africa’s fellow BRICS members.
Industry
Although the province boasts a well-balanced industry across all the
major sectors, the most important economic sectors are financial and
business services, logistics and communications, and mining, making
it the financial capital of the country and the continent. With more
than 70 foreign banks having their head offices in the province, and
at least that number of South African banks, stockbrokers and insurance
giants, the country’s economic hub is set and perfectly aligned
for international trade and investment.
Saying that, Gauteng’s economy has, over the last few years, been
moving away from traditional heavy industry markets and low valueadded
production towards sophisticated high value-added production,
particularly in information technology, telecoms and other hightech
industries.
Labour
Looking at the labour market in South Africa, Gauteng compares very
favourably with the other provinces. Though it is a fact, the country’s
unemployment rate is high and the trend is still increasing. Some
consolation, if any, is the fact that amidst the rising unemployment
levels, employment in the country has also increased since 2011 to
more over 1.1-million.
Between 2010 and 2014 earnings
levels increased in all industries,
with the exception of community
and personals services
(down R1 000). The largest increase
in earnings was observed in
mining (R2 000), utilities (R1 000)
and agriculture (R858) – all areas
in which Gauteng is taking a lead
role in the production arena.
Earnings growth over the period
was robust in skilled occupations,
in particular Managers (R5 000)
and Professionals (R4 400).
According to Stats SA, at provincial
level, median earnings in
2014 were highest in Gauteng and
the Western Cape, while earnings
increased the most over the period
2010–2014 in Gauteng (R833),
Free State (R500) and the Western
Cape (R423), making the province
a popular space for young graduates
to seek employment. This
would also explain the influx of
young professionals into the province,
thus largely complementing
the growing economy.
Furthermore, studies revealed
that while young people are less
likely to transition into employment
compared to adults, in 2014
these transition rates were highest
in provinces such as Western
Cape (6,9%), Mpumalanga (6,4%)
and Gauteng (6,1%).
Government job creation
programmes
The South African government
has since the advent of apartheid,
continuously been introducing
new job creation programmes in
the country and by 2014 awareness
about the Expanded Public
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