Business / Economy
Zimbabwe's productive sector employees decline by 17 percent
07 Mar 2011 at 08:58hrs | Views
THE number of employees in the productive sectors declined by 17 percent between last year and 2005, according to the Zimbabwe National Statistical Agency.
Zimstats' latest quarterly employment inquiry released last week shows that the number of employees in the production sector declined from 245 000 in 2005 to 203 000 in March last year.
This was largely attributed to the extensive retrenchments carried out by most companies in the manufacturing sector.
Confederation of Zimbabwe Industries president Mr Joseph Kanyekanye recently said lack of working capital and the flooding of cheap imports in the market had contributed to the high level of retrenchments. "The number of companies retrenching increased as companies grappled and continue to suffer from a liquidity crunch and a general lack of capitalisation.
"The influx of cheap imports against a domestic situation in which virtually all companies cannot find money for re-tooling their antiquated machinery also worsened the situation.
"The situation regarding retrenchments is therefore negative and will continue to get worse until and unless fresh cheap capital becomes available to industry," he said.
The QEI report shows that the number of employees in the service industries also declined from about 255 000 in 2005 to about 224 000 in 2008. However, the report also indicated that from 2008 there has been a general increase in employees who were engaged the sector although figures are not available. There was also a noted increase in the construction industry alone, which saw employees rising from around 21 000 to 28 000 during the period.
During the period under review the number of employees in the social services sector also increased from around 245 000 to 270 000.
The report shows that the education industry was the largest source of employment between January and March last year, followed by manufacturing, domestic work, public administration and distribution.
Overall, formal sector employees including domestic workers but excluding employees on large-scale commercial farms and ARDA (statistics on these employees are collected through agricultural surveys) declined from around 842 000 in 2005 to 762 000 in 2008.
The figures have since improved to 805 000 as at the end of March last year.
The Zimstats study is critical for compiling the National Gross Domestic Product and facilitating the country's engagement with international financial institutions.
However, the national statistical agency has been facing a number of constraints resulting in delays in the promulgation of such data.
Meanwhile, Zimstats says data collection for employment figures for the June, September and December quarterly periods is currently underway.
Zimstats' latest quarterly employment inquiry released last week shows that the number of employees in the production sector declined from 245 000 in 2005 to 203 000 in March last year.
This was largely attributed to the extensive retrenchments carried out by most companies in the manufacturing sector.
Confederation of Zimbabwe Industries president Mr Joseph Kanyekanye recently said lack of working capital and the flooding of cheap imports in the market had contributed to the high level of retrenchments. "The number of companies retrenching increased as companies grappled and continue to suffer from a liquidity crunch and a general lack of capitalisation.
"The influx of cheap imports against a domestic situation in which virtually all companies cannot find money for re-tooling their antiquated machinery also worsened the situation.
"The situation regarding retrenchments is therefore negative and will continue to get worse until and unless fresh cheap capital becomes available to industry," he said.
The QEI report shows that the number of employees in the service industries also declined from about 255 000 in 2005 to about 224 000 in 2008. However, the report also indicated that from 2008 there has been a general increase in employees who were engaged the sector although figures are not available. There was also a noted increase in the construction industry alone, which saw employees rising from around 21 000 to 28 000 during the period.
During the period under review the number of employees in the social services sector also increased from around 245 000 to 270 000.
The report shows that the education industry was the largest source of employment between January and March last year, followed by manufacturing, domestic work, public administration and distribution.
Overall, formal sector employees including domestic workers but excluding employees on large-scale commercial farms and ARDA (statistics on these employees are collected through agricultural surveys) declined from around 842 000 in 2005 to 762 000 in 2008.
The figures have since improved to 805 000 as at the end of March last year.
The Zimstats study is critical for compiling the National Gross Domestic Product and facilitating the country's engagement with international financial institutions.
However, the national statistical agency has been facing a number of constraints resulting in delays in the promulgation of such data.
Meanwhile, Zimstats says data collection for employment figures for the June, September and December quarterly periods is currently underway.
Source - Byo24NEWS
