Tag: unemployment

Although it is famous among middle-class tourists for its exquisite beaches, life in the OR Tambo district municipality in the former Transkei is far from beautiful for its residents. The district is one of the most deprived places in the country. Barely 6% of homes have piped water while less than one in ten households have flush toilets.

One year after COVID-19 was declared a pandemic, CEOs are voicing record levels of optimism in the global economic recovery, with 76% of global business leaders predicting that economic growth will improve in 2021. Coming off of a global recession (3.5% decline in world GDP) and a GDP contraction of 7% in SA, a record share of CEOs are optimistic about global economic growth this year.

Finance Minister Tito Mboweni’s budget has been received very positively, as demonstrated by the reaction from markets. SA Inc companies have rallied, the rand initially strengthened, and even the bond market is acting positively. However, while there are notes of hope, this budget also demonstrates a number of key risks, overly optimistic assumptions and potential weaknesses, pointing to an extremely challenging path ahead for the country.

Statistics South Africa (Stats SA) reported on 12 November 2020 that employment in South Africa increased by 543,000 in the third quarter of the year – recovering some of the 2.2 million jobs lost during the lockdown-hit second quarter.

On Tuesday Stats SA announced that SA’s GDP had contracted 51% between April and June (using annualised quarter on quarter numbers – in other words, this is a 17% decrease for the quarter) as a result of the lockdown imposed in response to Covid-19. The contraction was shocking – but not unexpected. Given that government took the decision to implement one of the harshest and longest lockdowns globally, the severity of the economic contraction should not come as a surprise.  

Real GDP surprised the market consensus to the downside in the second quarter of 2020 as the effects of the pandemic and the associated lockdown measures ate into economic activity. Growth contracted by 51% q/q saar and printed lower than the August 2020 Reuters Econometer median growth forecast of 44.5% p/p saar.

Almost all South African workers are regulated by minimum wages, be it the controversial sectoral minimum wages negotiated in bargaining councils, and often undemocratically extended to non-parties, or minimum wages prescribed by the Government.

Many of us have stayed later at work to meet a tight deadline or finish a large project, but would we work frequent unpaid hours? Have you considered the toll this can have on your mental health and wellbeing? It is well established and commonly known across the world that work-related stress is a huge contributor to work absence.

Your valuable skills development training partnerships assist us with changing the lives of thousands of young South Africans. South Africa’s increasing unemployment levels are a huge threat to future economic growth and the overall prosperity of its citizens. Statistics South Africa’s most recent Quarterly Labour Force Survey shows the country’s unemployment rate climbed to 30.1% in the first quarter of 2020.

The negative effects of South Africa's hard lockdown continue to reverberate through the economy and broader society. The latest flashpoint has been in the taxi industry, specifically in Gauteng, where the South African National Taxi Council (SANTANCO) started the week of 29 June by indicating their taxis will operate at 100% capacity – in open defiance of lockdown regulations.