Sorry, no jobs are here to stay

Millions of South Africans still live below the poverty line, but the jobless figures are the clearest indication that for many there has not been the “better life for all” they were promised. Statistics South Africa this week released the unemployment numbers for the third quarter of 2017 – and it’s depressing. The unemployment rate stands at 27.7% – so 6.2 million South Africans are officially out of work; 75 000 more than in the previous quarter.

It must be said, clearly, that the government has not been wholly responsible for the jobless figures. The international economy has slowed considerably and, among emerging market countries and even in Africa, South Africa has one of the lowest Gross Domestic Product (GDP) growth rates. We are still largely a resource-based economy and are, therefore, especially vulnerable to international commodity market fluctuations.

Union federation Cosatu also points to the fact that the structural changes in the economy – with increasing automation and mechanisation being a major one – have resulted in significant job losses.

Cosatu put the blame for the losses to these causes at the door of the government, saying there were no “coherent” plans in place to create jobs.

The elephant in the jobs room is, of course, rampant corruption and maladministration, which appears to be spiralling out of control under President Jacob Zuma.

That fact, coupled with the ongoing political instability ahead of the ANC elective conference in December, has had a definite impact on markets, the rand and financial confidence both internally and abroad.

If a country is viewed in a negative light – by both its citizens and foreign investors – the first noticeable impact is on spending. In uncertain times, everyone tightens their belt … and that means fewer jobs.

We wish we could say things will get better after December … but the signs are not good.