More economic turmoil for Ramaphosa as 6.2 million citizens are jobless

More economic turmoil for Ramaphosa as 6.2 million citizens are jobless

- Unemployment in South Africa continues to rise while the president tries to boost the economy

- In the latest statistics, unemployment is up 0.3% to 27.5% in the latest quarter

- The formal sector has lost the most jobs, while 39% of youths are still unemployed

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South Africa's unemployment rate has once again increased, despite President Cyril Ramaphosa's efforts to boost the economy.

On Tuesday, Stats SA revealed in the Quarterly Labour Force Survey that joblessness has increased 0.3% to 27.5%.

It may not seem like much, but it's the second back-to-back quarterly rise in unemployment. Ramaphosa is currently on a drive to boost the economy, as well as increase job opportunities. Meanwhile, the government is facing grave revenue limitations.

To put it in numbers:

  • In the second quarter, unemployment rose by 102 000, compared to 127 000 in the third quarter.

According to a report by Daily Maverick, five provinces saw an increase in employment. However, the Northern Cape, KwaZulu-Natal and Western Cape saw major declines in employment.

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The formal sector saw the most job losses.

  • Manufacturing - 29 000 jobs lost;
  • Mining - 27 000 jobs lost;
  • Transport- 23 000 jobs lost;
  • Construction - 21 000 jobs lost.

Briefly.co.za learned that the only formal industries that saw an increase in jobs included the trade and industries and finance sectors.

In 2017, the unemployment rate for the thir quarter was 27.7%. While this year, in comparison, looks a little better, it's not a very optimistic figure.

At present, the informal sector is creating the most jobs:

  • 188 000 jobs were created in the third quarter of 2018.
  • Meanwhile, discouraged job seekers also increased in the third quarter by 0.1 of a percentage point to 37.3%.
  • Limpopo and the Free State were 0.5 of a percentage point higher than at the same time last year.

Youth unemployment rates:

  • Of those unemployed citizens aged 15 to 34, who are jobless, or are not in education or training, unemployment was up by 0.7% to 39%.
  • 4 in 10 youth are therefore not employed, in school or in training.
  • Education is still a major factor. More than 50% of SA's jobless people have not completed matric.
  • 35.1% of unemployed people’s highest qualification is matric.

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It's important to note that these statistics are not taking the president's stimulus package or investment drive into consideration.

The stimulus packaged was announced late in September, while in October, Ramaphosa hosted his investment summits.

It's also vital to take into consideration that Tito Mboweni, the new Finance Minister, delivered his medium-term budget policy statement in late October.

While the figures look gloomy, companies, labour and the government committed to save jobs during the jobs summit.

President Cyril Ramaphosa said his plans to get $100 billion worth of investments in South Africa over the next five years is on track.

The president added the interest in investing in the country has overwhelmed him. He made this statement when he hosted the investment summit on Friday, 26 October.

Ramaphosa is on a mission to deliver on his pledge to give the economy a much needed boost. He also wants to create jobs for the 27% unemployed work force in the country.

The UK, UAE, Saudi Arabia, China, and Daimler AG’s Mercedes-Benz unit have pledged $35.5 billion worth of investment in the country since Ramaphosa investment drive started in April.

On Friday, $20 billion was pledged. More than 1000 delegates were attracted to the summit on Friday.

Meanwhile, Mboweni’s mid-term budget revealed plans to raise GDP to 2% in the next two years.

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Source: Briefly.co.za

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