South Africa's Latest Unemployment Rate of 34.4% Is a Sign of Financial Depression

• The Quarterly Labour Force Survey (QLFS) released by Stats SA shows that the unemployment rate has increased by 34.4%
• Economists say that the unemployment rate is an indication of depression at that the South African government needed to act quickly
• In the second quarter of 2021 more than 500 000 people in South Africa became unemployed according to the data collected by Stats SA

JOHANNESBURG - The latest figures from Stats SA survey shows that South Africa's unemployment rate has reached an all-time high of 34.4% in the second quarter of 2021. This is an increase of 1.8% since the first quarter.

The Quarterly Labour Force Survey (QLFS) complied by Stats SA is a household-based sample survey that gathers information on the labour market behaviours of people in South Africa aged 15 and up, according to IOL.

Read also

Almost R45b worth of pension funds in SA’s retirement industry lie unclaimed

The QLFS revealed that in the second quarter, the number of employed people fell by 54 000 to 14.9 million while the number of unemployed individuals increased by 584 000. As it stands, 7.8 million South Africans between the ages of 15 and 64 are unemployed.

According to EWN, economist Mike Schussler says that South Africa currently has one of the highest unemployment rates in the world and this is a significant issue for the country that needs to be addressed by the government.

Schussler says the unemployment rate is clear evidence of economic depression and that no other country in the world has had such a high unemployment rate for the past 27 years.

Another economist Chifipa Mhango says the high unemployment rate is an indication that the South African government needs to urgently institute an economic recovery plan.

Read also

Looming fuel crisis raises concerns for economists: "Time to start riding bikes"

Poverty and Inequality Institute push for an increased basic income grant

Briefly News previously reported that the Poverty and Inequality Institute actively expressed the necessity of a basic income grant valued at R1 268 per month.

Last month, Stats SA released an updated Quarterly Labour Force Survey for the first quarter of 2021. The report shows an increase in the number of unemployed people in South Africa, to an all-time high of 32.6%.

The report indicates that the amount of unemployed people has increased by 28 000 bringing the amount close to 7.2 million South Africans.

President Cyril Ramaphosa stated that the government is considering whether or not implementing the grant is practical, according to CapeTalk. The unemployment rate according to the expanded definition increased to 43.2% in the first quarter.

Source: Briefly News