Tag: unemployment rate

The recent economic reconstruction and recovery plan delivered by South African President Cyril Ramaphosa, emphasised the intention of Government to assist female-led businesses that have experienced hardships as a result of COVID-19.

The captain of Ship SA, President Cyril Ramaphosa, can surely see the iceberg that we are heading for and one can almost hear the call go out for us to 'brace for impact'. The iceberg is an economy that is in crisis – an unemployment rate of 42% (using the expanded definition), GDP growth projections down by 7.8%, tax revenue projections at R304 billion less than originally budgeted for, a budget deficit of R709 billion for 2020/21, a current debt to GPD level of 81.8% and debt service costs (interest) currently amounting to 21c in every tax Rand collected.

The immense socio-economic impact under one of the world’s most extreme lockdown’s during the COVID-19 pandemic has resulted in South Africans uniting for their voices to be heard under a grassroots movement called Move One Million.

South Africa has faced many crises before, but the one we are now in has convoluted our collective thinking about what true leadership is all about. The political atmosphere in the country has deepened the leadership question and has resulted in creating a tense and protest-filled environment.

The Job Seekers Exemption Certificate (JSEC) idea has been around for a long time. It was first presented to President Thabo Mbeki, who passed it on to the Department of Labour. But nothing was done with it. It seems that it is only when you are unemployed that you can understand that it will be like holding a piece of gold in your hand.

According to the latest Employment Outlook Survey, South African employers report limited hiring intentions for the second quarter of 2020. While 8% of employers forecast an increase in payrolls, 5% anticipate a decrease and 85% expect to make no changes. Once the data is adjusted to allow for seasonal variation, the overall outlook for South Africa stands at +2%, unchanged from the previous quarter.

Budget statements have in recent years perennially made downward revisions in economic growth projections. Disappointing growth outcomes compared to official forecasts is partly attributed to the inability to implement planned structural reforms that would have delivered improved growth outcomes.

Public sector staff expands and retail jobs disappoint. Statistics South Africa (Stats SA) reported on that South Africa’s unemployment rate was unchanged at 29.1% during the fourth quarter of 2019. With this reading, South Africa has the fourth-highest unemployment rate out of 182 countries tracked by Trading Economics, after Namibia, Bosnia & Herzegovina and Angola.

Stats SA recently announced that South Africa’s unemployment rate increased by 0,1% to 29,1% of the population in the third quarter of this year. While this figure is at an all-time high since 2008, it is unrealistic to expect our government to reduce these statistics on their own.

The latest research has demonstrated what we always known: Entrepreneurship can be taught, selected for and measured. A study has identified the indicators which predict high-impact entrepreneurial activity in the start-up sector. The study was carried out with 1,200 start-up and established entrepreneurs.