Job Crisis One of the Greatest Threats South Africa Faces in 2022

Job Crisis One of the Greatest Threats South Africa Faces in 2022

  • South Africa faces a huge crisis of unemployment that needs urgent solutions from politicians
  • Economist Duma Gqubule predicts that over 400 000 additional people will need jobs each year until 2026
  • The economy is predicted to return to a low GDP growth similar to what South Africa experienced pre-pandemic

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JOHANNESBURG - The job crisis is a challenge that the government must deal with urgently in 2022. Economist Duma Gqubule said that the government had a lot of work to do before the economy can be revived.

He said that every forecast, even those made by the government, reveals that the economy will return to a low GDP growth experienced before the pandemic.

Unemployment, crisis, 2022, economy
South Afirca faces a job crisis that needs urgent solutions. Photo credit: @_cosatu
Source: Twitter

The IMF only predicts a 1.5% growth in the economy before 2026. This growth rate will only create an estimated 200 000 jobs a year.

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Gqubule warned that with the population growth the number of unemployed will also increase. He predicts that an additional 400 000 people will become unemployed each year before 2026 according to eNCA.

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Economic growth must increase at a higher rate in order to create jobs to ease the employment crisis. Gqubule is worried because the government and opposition parties do not appear to have any real solutions for the job crisis.

He would like to see politicians meet to discuss real solutions to the unemployment crisis.

City Press reported that the economic outlook for 2022 remains uncertain as the government battles to revive the economy.

Rand weakens by 2.6% during holiday trading, economic predictions for 2022

Earlier, Briefly News reported that on 29 December, the Rand weakened by 2.6%. By the end of the day, the Rand was trading at R18.03 against the Euro, R15.93 against the US Dollar and R21.44 against the Pound.

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The price of gold dropped by 1%, which decreased share prices in Harmony, AngloGold and Gold Fields. This has been credited to fatigue in the period between Christmas Day and New Year's Day.

According to Reuters, the global surge in Covid-19 infections has affected holiday trading, causing losses in many markets, including aviation and currency exchange.

Recent market losses and economic predictions for 2022

Tokyo's markets closed lower, but London reported a rise in trading at midday as they tried to catch up after a long weekend, Fin24 reports.

Kweichow Moutai, a Chinese beverage company that rivals international liquor groups, experienced major losses This had a ripple effect across Chinese markets.

Mark Zandi, an economist, has predicted that in 2022's first quarter, Omicron could cause further losses in many markets globally and that further waves and variants could have a similar effect.

Source: Briefly News

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