Employment in medium to large privately held businesses in SA grew 7% last year, according to a report released by Grant Thornton yesterday.

This is four percentage points up on last year’s findings, which reflected only a 3% growth as a result of hampered employment growth within the manufacturing sector.

In 2005, Grant Thornton’s employment growth index showed 6% year-on-year growth in employment in SA.

Grant Thornton SA chairman Leonard Brehm said yesterday: “Growth in employment is the best news we could ask for. It appears that we are well past the years of jobless growth.

“Prospects for next year are excellent as well.”

The index forms part of the Grant Thornton international business report.

The research was carried out among the owners of 7200 med-ium to large privately held businesses in 32 countries, including 200 in SA, between November and December last year .

Fifty-three percent of the South African companies that took part said they expected to increase their staff complement in the next year.

The survey disclosed that 62% of privately held businesses in SA increased their staff over the past year.

This is nine percentage points up on the previous year. The global average for employee growth in this market is 57%.

Twelve percent of businesses reported a decrease in employment while, internationally, 13% of entities cut their staff.

Those businesses that increa-sed employment reported on average that they had 14% more employees.

The businesses that cut staff lost an average of 11%, with the overall result being a 7% increase.

The major industry sectors in SA all reported an increase in employment.

For the second year in a row, the construction industry reported a significant employment increase, with 13% growth, up from 11% previously.

The manufacturing sector, which previously recorded a 3% decline in employment growth, now reports year-on-year growth of 5%.

The services and retail sectors reported year-on-year employment growth of 8% and 4% respectively.

Previously, the services sector reported 6% growth, while retail reported a 5% increase in employment.

The country with the most positive outlook for employment growth for the year ahead is India, which expects an 80% increase.