Immigration laws ‘causing skills shortage’

2011-05-10 11:50

A leading South African employment services company has warned that tough immigration laws were creating a shortage of skilled labour and artificially inflating top-end wages.

Adcorp said the skills shortages posed “significant limitation on the country’s long-term economic growth potential,” the company said.

“To a great extent, the shortage of highly-skilled workers has been artificially induced by the Immigrations Act (2002), which makes it exceedingly difficult for foreigners to find work in South Africa,” said Adcorp economist Loane Sharp.

In inflation-adjusted terms, South Africans in highly-skilled occupations earn 286.4% more than in 2000, the company said, in releasing its latest monthly job data.

The Adcorp Employment Index shows a “negligible” increase in jobs in April, of just 1.8 per cent.

The monthly survey found that there were up to 829 800 vacancies for highly-skilled workers, such as managers and technicians.

Official unemployment stands at 25%.

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