New economic policies affect job market

HARARE - Confederation of Zimbabwe Industries (CZI) has noted that companies scaled down while there was movement on the job market between January and September this year, it scaled down towards year end after government’s introduction of new economic policies.

This comes after Finance and Economic Development minister Mthuli Ncube told legislators in the National Assembly last week that the employment rate has shot up over the past months.

“I submit that the budget is dealing with unemployment issues, using the tax rebate system; there is a whole list of incentives in the budget which go a long way to protecting jobs and creating new jobs,” said Ncube. “It is also not surprising that the data from Nssa is showing that employment levels have increased over the last few years.”

However, CZI president Sifelani Jabangwe told the Daily News yesterday that although the employment situation is not worse than in 2017, the final quarter of 2018 has presented challenges to industry due to foreign currency constraints.

“Between January and September this year we had a really fantastic performance from different companies, producing between 20 to 50 percent above their production levels. Definitely there was an increase in employment during that period,” he said

“However, between October and December there have been some challenges in industry relating to foreign currency and some companies scaled down a bit. On average I don’t think we are worse off than 2017 in terms of employment.”

In July this year the media reported that Zimbabwe’s employment levels had firmed over the first six months with more than 60 000 jobs created in various sectors, as the economy continued to stabilise.

At the beginning of July 2018, statistics from the National Social Security Authority (Nssa), collated through P3 forms submitted by new employees, showed that 62 689 jobs were created between January and June 2018.

Nssa data also showed that 1 730 new companies had been registered up to end of June.


 

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