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All eyes on Stats SA for latest job figures

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All eyes will be on Stats SA as it releases the latest job figures on Tuesday. Stats SA will release the first quarterly employment statistics which is a survey of how many jobs were added or lost in various sectors of the economy without taking into account the age of those affected.

Economists expect the numbers to show a generally weaker labour market in the economy. At the last count, the unemployment rate was officially at 26.7%.

Unemployment is one of South Africa’s most stubborn economic problems. Despite a slew of policy proposals by government, the majority of South Africa’s working population are still without jobs.

More concerning is that almost every year many more young people join the long queues of job seekers. The situation is compounded by lack of skills need to power the country’s advanced economy.

 

Market analyst, Patrick Mathidi says the data will show that more than 50 percent of the unemployed is youth.

“Many continue to roam the streets daily without a hope of ever finding a job. The country’s high crime rate has been pointed at the large unemployment rate among young people. To remedy the situation, government has invested billions of rand in education. But many are lost in the schooling system or possess skills that are not required.”

One student says, “I’m graduating soon but I’m also scared that what’s going to happen to me after because we are from a social norm that we go to school and study but at the end of the day we don’t get jobs.”

“Young people are setting for things which are not good for them. I think the government needs to introduce new programs to up-skill young people with skills so that they can be employable,” says another person.

First-quarter unemployment was unchanged at a high of 26.7 percent. It’s been stuck around 25 percent for a very long time. Market analyst Chris Gilmour has questioned why unemployment rate has been sitting around 26% for so long.

‘I am not too concerned about putting a figure on this one, frankly I don’t believe the figure. I think they are significantly higher 26 and 27% are the figures coming out. To even talk about them frankly I don’t think they deserve. That says to me our unemployment rate is actually higher. But it appears static for years.”

Gilmour says unemployment should be higher in the current economic environment.

“That’s says to me that unemployment is higher. It’s one of the highest anywhere in the world. Should be raising even further, but it appears not be. It seems to relatively standing around 26,27 percent in years and years, on a narrow bases, on a broader bases which includes people who are disillusioned and stop looking for jobs. It counts about 38 percent if you look at the youth unemployment is absolutely shocking over 30 percent, then you get indication of how bad the situation is.”

 

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