Unemployment in SA worsens

SA’s unemployment rate worsened to 27.2% in the second quarter‚ from 26.7% in the first quarter‚ Statistics SA reported on Tuesday in its quarterly labour force survey.

Manufacturing lost 105‚000 jobs; community‚ social and personal services lost 93‚000; and trade lost 57‚000 jobs.

On the plus side‚ transport added 54‚000 jobs‚ construction added 45‚000 and mining added 38‚000.

While mining has taken strain‚ job increases were seen in nonferrous metal ores‚ gold and uranium ore. Statistician-general Risenga Maluleke said: “These are the areas that have observed gains. In other areas‚ strains would have been felt but the net effect was the increase of 38‚000 jobs.”

The expanded unemployment rate‚ which includes discouraged work seekers‚ increased by 0.5 percentage points to 37.2%.

The number of discouraged work seekers increased to 2.9million during this period while the working-age population increased by 154‚000.

The Eastern Cape has the highest unemployment rate‚ at 45.8%.

Reserve Bank governor Lesetja Kganyago said last week that the current economic growth trajectory remained too low to tackle SA’s unemployment levels.

The Reserve Bank slashed its forecast from 1.7% to 1.2% earlier last month. –

In other areas‚ strains would have been felt but the net effect was the increase of 38‚000 jobs