Nearly half a million formal jobs have been created since 2018, underlining the enabling environment that Government has created for the private sector to invest and expand.
However, recruitments slowed in 2020 as a result of
Covid-19.
Latest figures from the National Social Security Authority
(NSSA) show that 479 709 new workers have been registered with the pension
scheme from January 1, 2018 to date.
In 2018, 20 640 jobs were created, while the number peaked
to 242 998 jobs in 2019.
The figures went down to 78 409 in 2020 before picking up
to 121 145 in 2021.
So far, in 2022, 16 517 new workers have been registered.
NSSA’s marketing and communications executive Mr Tendai
Mutseyekwa told The Sunday Mail that agriculture had created the highest number
of jobs.
“The peak period for new jobs creation was in 2019 where
242 998 new jobs were registered. The trajectory was seriously hampered by the
Covid-19 pandemic. The impact of the Covid-19 pandemic on new job registration
is evidenced by a sharp decline in new registrations in the year 2020, where
the intensity of national lockdowns was the highest,” he said.
“The agricultural sector was the biggest employer
throughout the period on analysis. This was followed by the retail and general
business sector.”
Public Service, Labour and Social Welfare Minister
Professor Paul Mavima said new jobs could have been higher had it not been for
disruptions caused by the pandemic.
“The number of people that have been absorbed in both the
public and private sector due to the expansion of the economy is enough proof
of the work that is being put in by the Second Republic. The emerging signs of
recovery after four years of incredibly hard work are now apparent despite the
effects of the pandemic,” he said.
It was noteworthy, he added, that despite the pandemic,
news jobs continue to be created.
“We were surprised to realise that in the middle of
Covid-19, we were creating jobs instead of losing them. There were a few
retrenchments, but we managed to retain jobs and workers.”
Prof Mavima said employment figures were in sync with
growing economic activity, especially in the manufacturing sector, which has
been supplying most retailers with locally-produced goods.
“The fact that 75 percent of our products are
locally-manufactured should be telling; it means more employment within our
country.”
According to the Confederation of Zimbabwe Industries (CZI)
2021 manufacturing sector survey report launched in Harare on Wednesday,
capacity utilisation in the manufacturing sector jumped to 56,5 percent in 2021
from 47 percent in 2020 largely driven by increased investments in industry.
“About 37,8 percent of the manufacturing sector undertook
investments to increase their production capacity in 2021 and this resulted in
additional capacity of 25,6 percent,” CZI chief economist Dr Cornelius Dube
said while presenting the report.
He said about 57 percent of manufacturing sector firms
registered an increase in sales, with the drinks and tobacco sub-sector
recording an 82 percent growth in output.
It also had the highest percentage of firms registering an
increase in sales and volumes.
The business representative group said the number of new
jobs created in industry last year increased by 20 percent compared to 2020.
In her remarks at the same launch, Industry and Commerce
Minister Dr Sekai Nzenza said the growth in capacity was in response to “an
enabling business environment” and the ease of doing business reforms
prioritised by the Second Republic.
Economist Professor Gift Mugano said the figures were
encouraging and showed that Zimbabwe’s economy was on a growth trajectory
despite current headwinds.
“The number of people employed as reported by NSSA could be
coming from two fronts: The first front is new ventures which we saw,
particularly in the mining and agriculture sectors; naturally, it would come
with new jobs and also new establishments in the manufacturing sector,” he
said.
“The second front is related to capacity utilisation.
According to last year’s CZI’s report, capacity utilisation was about 60
percent, and when that happens, you can see an increase in the number of people
employed to support that level of production.”
Prof Mugano said the trend was likely to continue if
currency volatility was tamed.
“The challenge we have now is currency stability. When the
currency is not stable, it erodes the cash flow of the company and naturally it
impairs any growth prospects. Normally, growth is associated with job
prospects. Going forward, we need to rein in on currency, exchange rate
instability and inflationary pressures; we need to restore stability to create
a framework and an environment for economic growth, which will then create more
jobs.”
A lot of new investments expected to add new jobs are
currently underway in various sectors.
More than 1 500 workers have been recruited by Dinson Iron
and Steel Company, a unit of Tsingshan Holdings, which is in the process of
developing an iron ore mine and steel plant in the Mvuma-Chivhu-Manhize area.
An additional 3000 jobs will also be added soon.
According to the Zimbabwe National Statistics Agency
(Zimstat), an employee is anyone who works for a public or private employer for
more than 30 hours per week, whilst an employer is any individual or entity
that employs a worker for more than 30 hours per week. Sunday Mail
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