Looking for a job? Try after three months or so, say big employers

Job seekers will have to wait longer for employment as top companies say they have no intention of hiring in the next three months despite growing confidence of improved performance.

A survey released on Tuesday by Standard Chartered Bank polling 200 leading companies in manufacturing, services, construction and agriculture, shows that the informal sector could be the only alternative, with government having frozen employment early in the year.

The survey was undertaken in partnership with international research firm, MNI Indicators, and sought company leaders’ views on whether business has increased, decreased, or remained the same, compared with the previous month.

The leaders are also asked about their expectations over the next quarter. An indicator above 50 shows an expansion while that below 50 denotes a contraction. A result of 50 means no change.

“Firms were keen on producing much more efficiently and increasing productivity of existing employees,” Standard Chartered regional head of research for Africa Razia Khan said via video conference on Tuesday.

Improved productivity, she said, has not translated into more employment in Kenya.

The country is the first in Africa where the business sentiment indicator survey was conducted having started in February this year. It is carried out in Nigeria and Ghana.

It measures perceptions by companies on such issues as credit, employment, export trends and interest rate fluctuations.

DROP IN CONFIDENCE

According to the Kenya National Bureau of Statistics, the number of employees in the formal sector rose to 2.2 million last year from 2.1 million in 2012.

The informal sector is estimated to have created 625,000 jobs accounting for 84.3 per cent of all new jobs.

The report revealed that the business confidence in Kenya dropped to 53.4 from 65.3 in September. The benchmark point is 50.

The report notes that increasing electricity production is expected to lower the cost of power and boost the economy.

According to Ms Khan, the expected drop in for electricity charges and completion of infrastructure projects will drive the business sentiment indicator up in the coming months.

The index hit the highest level in September from 56 in August due to what the bank termed “seasonal factors”.

“We think the business sentiment indicator for October should only be interpreted as stabilisation in business confidence not the start of a sharp deterioration,” she said.