Unemployment level could worsen by 2014: economist

An economist has warned that South Africa's current unemployment levels of 26% could worsen by 2014 if business does not grow at a significantly faster rate.

Robert Pollin, the director of political research institute at the University of Massachusetts, USA, was addressing a group of economists at the launch of United Nations book titled An Employment-Targeted Economic Program for South Africa in Sandton. Pollin says over the next ten years, if the economy acts like it has from 1994-2004 (with growth going into capitalisation) joblessness will increase.

He says there is a lot of uncertainty as to how the country is going to stimulate the growth and its going to be very difficult for ASGISA or any other variation to get the economy growing fast because the tool that they use to keep inflation down is high interest rates.