PPS shows confidence levels rising

The index showed that the overall confidence levels among the country's graduate professionals climbed to a 12-month high of 59% in the first quarter following a period of extended concern over the political climate‚ ongoing wildcat strikes and downgrades to the country's sovereign credit rating.

The index tracks the confidence levels of over 5‚000 graduate professionals. Professions surveyed included advocates‚ chartered accountants‚ doctors‚ engineers‚ and nurses among others.

PPS's head of group marketing and stakeholder relations Gerhard Joubert said graduate professionals tended to be most confident at the start of the year.

"It is very welcome to note that some optimism is also now creeping in‚" he said.

Confidence increased on the back of a range of economic factors the index showed.

Positive results

Respondents recorded a two percentage point rise on the economic outlook for the country over the next 12 months and on the outlook for equity markets over the same period to 57% and 63% respectively.

Professionals were also more confident that they would remain in SA for the foreseeable future‚ with a confidence level of 77% for the first quarter compared with 75% for the previous three months.

"This measure has continually declined since recording a high of 84% in the first quarter of 2011 but it is pleasing to note that we are seeing a rise in optimism now - and 77% is still a very positive result," the index said.

Confidence in a number of critical socio-economic issues in the country declined‚ according to the index.

Confidence in the standard of education in the country improving over the next five years fell by one percentage point to 43% from the previous quarter.

Some concerns

Almost all those who participated in the survey said they remained concerned about the lack of mathematics and science graduates in the country. The standard of education has been a concern for top leaders in both the public and private sectors.

Unemployment remained the biggest area of concern for graduate professionals‚ with a 38% confidence level when asked about their optimism about the standard of unemployment improving over the next five years‚ the lowest reading in the index in the first quarter.

Joubert said that this was to be expected given recent news from Statistics SA that unemployment in the country worsened in the first three months of the year.

Unemployment rose to 25.2% in the first quarter from 24.9% in the previous quarter.

Confidence in the improvement of crime rates also revealed a one percentage point drop from the previous three months to 39%.

Confidence over the future of the healthcare system increased by one percentage point to 43%.

"Of respondents 51% said they agree with the principle behind the National Health Insurance (NHI) scheme‚ up two percentage points from last time‚ while 17% said NHI is the solution to fix the ailing health system‚ also up two percentage points‚" Joubert said.