Unemployment bad news for everyone in SA

Hot on the heels of the mediumterm budget and the Investment Summit came bleak statistics that spelt out the urgency of President Cyril Ramaphosa’s quest to revive South Africa’s economy. Stats SA on Tuesday announced unemployment had risen for the second consecutive quarter. According to the Quarterly Labour Force Survey, the official unemployment rate rose by 0.3 of a percentage point to 27.5%. The expanded rate – the figure that includes discouraged job-seekers – rose to 37.3%.

While slightly below the unemployment rate this time in 2017, this is the second consecutive quarter-on-quarter increase in unemployment numbers this year. In human terms it means 127,000 more people found themselves unemployed in the third quarter of 2018 as SA slipped into recession.

Most jobs were lost in the formal sector with sharp losses in manufacturing, mining, transport and construction. In contrast, the informal sector added 188,000 jobs in the quarter.

Unemployment is a national crisis, an emergency. It is felt especially sharply in this province which was one of only two provinces to record a loss in employment opportunities in the quarter under review.

For young South Africans, the picture is especially bleak , with close to four in 10 youths under the age of 34 not in work, school or training.

What this means is bad news for everyone, not only for those without jobs. Higher unemployment means less demand for consumer goods, more social unrest and increased reliance on social grants for survival.

The latest figures come as the government faces severe fiscal challenges. The president’s initiatives need to start paying off, and fast. But in order for us to begin to dent joblessness and have inclusive growth, compromises will need to be made by unions and business alike. Our high-cost, lowreturn education system will have to be overhauled to meet the needs of a modern economy. Pointless red tape needs to be slashed.

South Africans seem to have almost come to accept that it is normal for millions to be unemployed. It is not normal for a country with our profile and potential. As a country we need to stand together to tackle joblessness.

South Africans seem to have almost come to accept that it is normal for millions to be unemployed