Growth of South Africa's automotive industry helped create new jobs in the third quarter of 2011, new figures have revealed.

The latest review of the industry by the National Association of Automobile Manufacturers of SA showed total employment in new vehicle production rose by 1.9 per cent during the three months to September 30th, according to the BusinessReport.

A total of 538 jobs were created, taking the number of positions to 28,623.

Domestic and export sales of new cars were strong during the period and executive director of the association Nico Vermeulen said there was a strong recovery in transactions during August and September.

He noted manufacturers have been able to fulfill backlogged orders after reverting to standard production levels and seeing supply levels improve, however availability of some components is being hampered by shortages caused by the Japan earthquake earlier in the year.

Despite the strength of the South African car manufacturing industry, labor productivity in the country as a whole has fallen and hit a 40-year low during October, according to the latest Employment Index from Adcorp.

Posted by Lee Thrace