Export Oriented Enterprises shrink: 1068 workers face unemployment
Five enterprises closed their doors while 86 others were forced to reduce staff strength, putting 1,068 people out of a job. (Image: business.mega.mu)
Export Oriented Enterprises are facing the heat, with the sector shrinking 1.5% from 324 firms at June-end to 319 at September-end and adversely affecting employment.
Also, the number of enterprises went down by 20 (-5.9%) compared to September 2012, 18 of them being ‘large’ companies.
Five enterprises producing apparel and jewelry, among others, closed their doors during the period, while 86 others were forced to reduce their staff strength, putting 1,068 people out of a job.
However, this decline was partly counterbalanced by an expansion in the workforce in 71 enterprises, generating 916 jobs. These were contributed primarily by the food and textiles sectors, which witnessed a net increase of 161 jobs from 4,754 to 4,915 and 144 jobs from 4,813 to 4,957 respectively.
At the end of the third quarter of 2013, 54,016 people were employed at EOEs. In the July to September period, Statistic Mauritius data showed a decrease of 0.3% in EOE employment from 54,168 at the end of June 2013 to 54,016 at the end of September 2013.
Further, data for September 2013 showed that, compared to September 2012, even as the number of expatriates went up 3.6% and male employment showed an increase of 0.3%, female employment dropped by 0.8%.
In terms of export destination, United Kingdom, France and United States of America were the main EOE markets, together accounting for Rs 17,903 million, or 51% of total exports. South Africa, Italy, Spain and Madagascar are the other main markets for EOE exports.
However, while exports to Italy and Netherlands flourished with an increase of 68.3% and 74.9% respectively, Spain and France disappointed with a decrease of 35.6% and 7.9% respectively.
EOE exports for the first nine months of 2013 amounted to Rs 35,110 million with an increase of 5% mainly from “fish and fish preparations” which grew 13.3% to Rs 1,072 million.
Besides “pearls, precious and semi-precious stones” increased 45.5% to Rs 568 million, while “textile yarn, fabrics, made up articles” went up 23.8% to Rs 397 million.
On the other hand, the export of “Jewellery, goldsmiths and silversmiths wares” was down 17% to Rs 226 million, “Watches and clocks” were 13.4% less to Rs 86 million and “Optical goods” decreased 19.3% to Rs 42 million.