New unemployment rate record (34.9%) but 'we haven't seen the worst yet'
The unemployment rate announced for the third quarter of 2021 showed a further increase, Statistics South Africa announced today.
The jobless rate went from 34.4% in Q2 to 34.9% according to the Quarterly Labour Force Survey.
It's the worst unemployment rate on record since 2008.
Bruce Whitfield goes over the numbers with Isaah Mhlanga, Chief Economist at Alexander Forbes.
Mhlanga notes that in terms of the expanded definition, the unemployment rate in South Africa now stands at nearly 47%.
Even if you look at the official unemployment rate - nearly 35% - it's really a serious crisis. In other countries they do go into a revolution with unemployment rates of 15%.Isaah Mhlanga, Chief Economist - Alexander Forbes
I think we haven't seen the worst yet. We're now seeing some of the impacts of the July riots coming through in those third quarter numbersIsaah Mhlanga, Chief Economist - Alexander Forbes
Mhlanga notes that almost all the sectors bar one, shed jobs in Q3.
Decreases in #employment were observed in all industries except #Finance with a quarterly increase of 138 000. Trade (309 000), Community & social services (210 000) & Construction (65 000) recorded the largest employment losses— Stats SA (@StatsSA) November 30, 2021
Read more here: https://t.co/Se9qQrwvsi#StatsSA pic.twitter.com/ONNl3JGGbL
Financial services is the only one that added 138,000 jobs... 571,000 jobs lost in the formal sector where you expect employment to be much more secure... The informal sector has created about 9,000 jobs, too little to do anything that is visible...Isaah Mhlanga, Chief Economist - Alexander Forbes
We're not seeing enough being done by the powers that be in the policy space...Isaah Mhlanga, Chief Economist - Alexander Forbes
Mhlanga notes that without investment from the private sector and, importantly without security of energy, the jobs situation is not going to improve.
Listen to his analysis on The Money Show:
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