Thu. Jul 18th, 2019

Expected unemployment rate decrease boosted by festive activity in South Africa

Nothing to be too excited about, experts say.

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On Tuesday, we will find out whether the resilience shown by the economy in the fourth quarter of 2018 has yielded its intended results in job growth. Statistics SA is expected to release its quarterly labour force survey results.

Experts believe it will show that for the fourth quarter of 2018, South Africa saw an improved unemployment rate.

ReadCabinet lekgotla: Unemployment and foreign investment are top priorities

Unemployment rate figures under the spotlight

In 2018, the unemployment rate rose to become one of the highest in the world — at 27.5%. With the economy sinking into a technical recession, the outlook on its performance at the close of the year was not too positive.

The issue of unemployment has been a critical issue that President Cyril Ramaphosa has prioritised since coming into office in 2018.

The recent jobs summit that saw the private sector come together with civil organisations to pledge commitment to opening up job opportunities in South Africa.

However, according to experts, this behaviour is likely prompted by the increase in job activity during the festive season.

ReadEast London’s unemployment woes described as “hell”

Not much growth expected…

Annabel Bishop from Investec stated that the slight drop that is expected for Q4 figures should be attributed to the job openings we saw during the festive season.

“The December and festive season tend to see more additional employment from retailers, from shop assistants and obviously the tourism sector as well and that tend to see a little of a mild improvement. We’re not expecting to see a dramatic improvement.” she said.

Unemployment is still a battle the government is struggling to win. The promised radical emancipation of the poor through job creation has been in progress for the past 25 years.

ReadSouth Africa’s unemployment rate rises to 27.5%

However, not much can be done with an economy unable to hold its footing on the slightest growth prospect.

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