The South African economy started at a very bitter note this year with unemployment rising to 27.6%. This was 27.1% in the fourth quarter of 2018, but the ANC regime told voters how the figure was going to fall, they just had to vote for the party.
Extensive unemployment has risen to the highest level so far, 38%. It was previously 37%, which was already a record. By contrast, the number of unemployed increased by 3.7% to 6.3 million and the number of discouraged job seekers by 7.5% to nearly 3 million. This means that nearly 9.2 million South Africans of working age (aged 15-64) are not in school, do not study further and are not voluntarily unemployed (such as homemakers or early retired people). The number of unemployed has risen almost twice as fast as the number of working-age people, increasing by 1.6% to about 38.3 million.
The figures come from Statistics South Africa’s(SSA) quarterly employment survey (QLFS) for the first quarter of 2019, which was released on Tuesday morning. The figures probably confirm economists’ suspicion that economic growth was negative in the first quarter, but growth figures are only released in June.
While the election campaign was underway, South Africa had to hear how new jobs were to come in with foreign investors coming to the country. However, the latest statistics show that the ANC president has deceived the voters, or does not know what is happening in the country. This is the opinion of a Pretoria economist after it became known that the number of unemployed increased by a further 237,000, which means 16.3 million people are economically active and further increases in unemployment are expected due to the economic recession in which the country currently traffic.
In which industries is work created or terminated? Four out of ten companies measuring SSA have fewer employees than a year ago.
• The industry that has lost most employees in numbers is community services, which include the public service and various state institutions. This industry has nearly 211,000 fewer or 6.4% less employed than a year ago.
• Construction experienced the largest decline, 6.4%. This represents 92,000 fewer people working in the sector than a year ago.
• Manufacturing (-3.7% or -69 000 people) and agriculture (-1.1% or -9 000 people) are the other industries with fewer employees.
• Transport and logistics have the highest percentage of new employees, up 6.7% or 64,000 more than a year ago.
• Financial and business services employed the largest number of people, 114,000 or 4.7%.
• Perhaps surprisingly, given the pressure on consumers, 26,000 or 2% more people were employed in private households a year ago, including domestic workers, gardeners and nannies.
• Trade has 2.1%, or 69,000 more employees.
Concerns have been expressed about the increase in crime caused by the high unemployment rate, and the apparent inertia with the police to seize the criminals makes South Africa an unattractive investment point.
Sources: Netwerk 24, Vryburger
SA news team