Unemployment reaches 12-year high on the back of weak growth

The unemployment rate rose to 26.4 percent in the first quarter of 2015, the highest it’s been since 2003, according to Statistics South Africa.

This is up from 24.3 percent in the fourth quarter of 2014.

Economic growth slowed to 1.3 percent in the first quarter of 2015.

The expanded unemployment rate, which includes those who have given up on finding a job, rose to 36.1 percent from 34.6 percent.

We interviewed FNB Economist Alex Smith.

Listen to the audio (scroll down) for more detail.

Only 43 percent of adult South Africans have a job.

Alex Smith, Economist at FNB

The agricultural sector saw a massive contraction, driven by drought. Manufacturing and construction also fell due to electricity supply issues.

Alex Smith, Economist at FNB

South Africa is performing below par. We should be growing much faster but electricity supply constraints are putting a stop to that.

Alex Smith, Economist at FNB

This article first appeared on 702 : Unemployment reaches 12-year high on the back of weak growth


CapeTalk welcomes all comments that are constructive, contribute to discussions in a meaningful manner and take stories forward.

However, we will NOT condone the following:

  • Racism (including offensive comments based on ethnicity and nationality)
  • Sexism
  • Homophobia
  • Religious intolerance
  • Cyber bullying
  • Hate speech
  • Derogatory language
  • Comments inciting violence.

We ask that your comments remain relevant to the articles they appear on and do not include general banter or conversation as this dilutes the effectiveness of the comments section.

We strive to make the CapeTalk community a safe and welcoming space for all.

CapeTalk reserves the right to: 1) remove any comments that do not follow the above guidelines; and, 2) ban users who repeatedly infringe the rules.

Should you find any comments upsetting or offensive you can also flag them and we will assess it against our guidelines.

CapeTalk is constantly reviewing its comments policy in order to create an environment conducive to constructive conversations.

Read More
How to future-proof your kids by turning them into entrepreneurs

How to future-proof your kids by turning them into entrepreneurs

What do you want to do when you grow up? Here’s how to get your kids to answer, “I want to build businesses!”…

How to start an online business and common mistakes to avoid

How to start an online business and common mistakes to avoid

Quirk CEO Justin Spratt on starting an online business and/or taking your established business online.

Wanna be a small business owner? Interested in buying a franchise? Read this...

Wanna be a small business owner? Interested in buying a franchise? Read this...

We interview the Chairman of the Franchise Association of South Africa about the ins and outs of franchises.

Got a bright idea? How to turn it into a product or service you can sell

Got a bright idea? How to turn it into a product or service you can sell

Aurik Business Incubator Director and CEO Pavlo Phitidis takes listeners’ calls and analyses their products/service ideas.

How to go to market with your bright idea

How to go to market with your bright idea

Do you have an idea that could be worth a fortune? Here's how to turn that idea into something real you can sell.

How to turn R1000 into a thriving business

How to turn R1000 into a thriving business

Valerie Pole took R1000 and turned it into an extremely profitable business (and then wrote a book about it).

How to start a business with R20 and no experience

How to start a business with R20 and no experience

She couldn't sew and had no money, yet Fernanda Morrow created a wildly successful fashion accessory business.

No water? No problem! Young entrepreneur profits from crisis with invention

No water? No problem! Young entrepreneur profits from crisis with invention

Ludwick Marishane talks about entrepreneurship, his water saving invention and becoming SA’s youngest patent holder at 17.

Popular articles
Predictably awesome new Nando's ad reminds South Africans ‘we can fix our sh$t’

Predictably awesome new Nando's ad reminds South Africans ‘we can fix our sh$t’

Watch the Guptas pack their bags and run in Nando's inspiring new advertisement.

PSG Chair Jannie Mouton opens up (kind of) about Steinhoff

PSG Chair Jannie Mouton opens up (kind of) about Steinhoff

In 2012 Steinhoff acquired 20% of wealth manager PSG, reportedly infuriating Mouton. Bruce Whitfield interviews him.

[LISTEN] Sara-Jayne King overjoyed at finding her biological father

[LISTEN] Sara-Jayne King overjoyed at finding her biological father

After a 702/ CapeTalk interview, the author of the autobiographical book Killing Karoline spoke to her dad for the first time.

[LISTEN] Caller challenges Eusebius on land disposition

[LISTEN] Caller challenges Eusebius on land disposition

‘I need you to provide me with an answer' - John from Edenvale, Gauteng

Number of South Africans visiting the seaside has dropped

Number of South Africans visiting the seaside has dropped

Fedhasa's CEO is encouraging South Africans to take a look at the specials that are currently out there and make their bookings.

How businessman Max Lichaba struck gold with his jewellery company

How businessman Max Lichaba struck gold with his jewellery company

Entrepreneur Max Lichaba built his own empire and is the CEO of Lichaba Creations and several other businesses. This is his story.