Kenyan Job Vacancies Increase, but Salaries Take a Hit – Stanbic Report.
In November, many Kenyan businesses maintained a trend of hiring more workers, even as the country grappled with economic difficulties.
A survey by Stanbic Bank Kenya, released on December 4, highlighted a modest increase in employment across various sectors during the month.
The Stanbic Bank report showed that businesses recorded a slight rise in job numbers, though hiring margins remained narrow due to the ongoing economic strain.
For the second consecutive month, the seasonally adjusted Employment Index registered just above the 50.0 no-change threshold, indicating minimal growth in employment.
Key Sectors Driving Employment
Agriculture, wholesale, and retail emerged as the key sectors contributing to increased hiring in November. However, these hiring trends did not translate into higher earnings for employees.
For the first time in ten months, average salaries for private-sector employees dropped, likely influenced by statutory deductions such as taxes.
The report noted that the seasonally adjusted Staff Costs Index fell below the neutral 50.0 mark, signifying a decline in employee earnings.
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While sectors like agriculture and retail saw increased hiring, businesses in manufacturing and construction reduced their workforce in November.
The survey attributed hiring in certain sectors to increased workloads and larger marketing budgets, but manufacturing and construction bucked this trend.
The construction industry, which remains a critical source of both formal and informal employment for many Kenyans, particularly the youth, experienced reduced hiring.
President William Ruto’s Affordable Housing projects are among the initiatives aimed at creating alternative employment opportunities in this sector.
Weak Profit Expectations Among Businesses
Despite the hiring growth in some areas, businesses remained cautious about their profit expectations for the coming year.
The survey noted that business optimism was relatively weak, softening further since the start of the fourth quarter.
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Only 8% of firms expressed optimism about increased activity in the next 12 months, citing hopes tied to new marketing strategies, digital technologies, and branch expansions.
This mixed picture of employment growth and weak earnings reflects the challenges faced by Kenyan businesses as they navigate economic headwinds.
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