Greater Unemployment is Looming in South Africa

 

The trend of the unemployment rate over the last years and the prevailing circumstances in the  signal only the worst to come.

Earlier this week Statistics South Africa released an unemployment rate that showed an increase from the previous report. The rate now stands at 32.9% up from the 32.7% previously reported. The report also shows that the number of people added into employment during the reporting period dwindled, and the youth is still by far the most affected.

The ongoing energy crisis in the country has created strenuous circumstances for businesses and as a result they cannot expand to absorb labour since many of them are forced to operate for less hours of the day which results in less production and reduced revenue. All of this is happening while ruling party ministers are still yet to implement any plan that will see additional power capacity added into the grid. The slow deregulation of business and the questionable appointments of political leaders such as is the case with the last two mayors of the city of Johannesburg, Thapelo Amad and Kabelo Gwamanda, are neither enticing investors nor building confidence among consumers in the economy.

Both the South African Reserve Bank and the Department of Treasury are aligned with the World Bank and the IMF on the stark outlook of the South African economy. The inconsistent GDP growth that fluctuates within a low tight range is not helping the course of employment. Among other unpredictable factors are the public sector employees who can bend the government to their will and demand large pay increases in the middle of crisis, forcing the government into borrowing more money and leaving little of the rand for internal development which in turns takes away those scrappy government jobs that a portion of the youth look to for a few bills to get by.

Should we not get out of the above outlined situation soon, things will not get any better but worse. The country’s citizenry will be left in a place where they will remain destitute or create opportunities now out of the little resources that are still accessible.