Fin24

SA unemployment rates among highest

2011-05-04 06:49

Johannesburg - South Africa’s latest unemployment figure makes the country the one with the highest official unemployment statistic among 61 surveyed by Bloomberg.

Despite an economic uptick in the first quarter of the year, another 14 000 jobs were lost compared with the fourth quarter of 2010.

According to statistics released by Stats SA on Tuesday, the official unemployment figure is now 25%, one percentage point up on the 24% for the fourth quarter of last year.

The unofficial number – which includes those people no longer seeking work – looks even worse. This rose 1.1 percentage points to 36.5%, with some provinces like Mpumalanga showing that 42.5% of the labour force was without jobs.

Economists.co.za economist Mike Schüssler said that during the Great Depression of the 1930s America had had a 25% unemployment figure for only a few months.

For South Africa to maintain these levels over more than a decade shows that we don’t understand the problem, he said.

Nedbank issued a statement saying said that the figures were disappointing and emphasised the fragile nature of South Africa’s economic recovery. Problems around electricity provision and infrastructure would erode job creation even further.

According to Schüssler, job creation is overwhelmingly driven by public-service hiring.

In the first quarter of this year state-controlled companies and the public service had added some 158 000 jobs year on year.

Still, in the first quarter the number of jobs in the overall economy was only 42 000 more than in the first quarter of 2010.

This meant that 100 000 private-sector jobs had been lost, said Schüssler.

Government cannot sustainably remain the biggest employer, he said.

- Sake24

For business news in Afrikaans, go to Sake24.com.

Comments
  • AJ - 2011-05-04 07:43

    If you could hire someone would you jump at the chance or would you delay as long as possible? Govt could do far worse than find out why people would largely choose the latter, especially in small business. (Hint: it's not just about saving money)

  • blousambok - 2011-05-04 07:50

    Here's my experience as Jo Public. I was retrenched, so I started my own business, manufacturing products in SA, with SA raw materials. I employed 15 previously disadvantaged people. The retail sector is controlled, dominated, monopolised by the big players, both at retail and supply level. They SHUN the small entrepreneur in SA and would rather do business with the big guns who import their products at 50% less from China. So, I had to lay off 11 people. There's SA's labour issue from my perspective.

  • MoZaHo - 2011-05-04 07:51

    Hmmm, were jobs not promised for the last 17 years? What ever happened to that?

      Anarchist - 2011-05-04 14:06

      Dont be silly it Apartheid's Fault they can not deliver

      pinkalert - 2011-05-05 08:34

      yep and just before elections they keep promising? But as per usual they never deliver.

  • blousambok - 2011-05-04 07:53

    Here's my experience as Jo Public. I was retrenched, so I started my own business, manufacturing products in SA, with SA raw materials. I employed 15 previously disadvantaged people. The retail sector is controlled, dominated, monopolised by the big players, both at retail and supply level. They SHUN the small entrepreneur in SA and would rather do business with the big guns who import their products at 50% less from China. So, I had to lay off 11 people. There's SA's labour issue from my perspective.

  • ji - 2011-05-04 07:55

    South Africa’s latest unemployment figure makes the country the one with the highest official unemployment rate. SA has the highest rape rate SA has the highest murder rate SA has the highest accident rate , WELL DONE ANC , YOU HAVE OFFICIALY STUFFED SA UP COMPLETELY

      TamaraSays - 2011-05-04 15:26

      But they would argue that it's all about making SA Number One! (Personally, given the lists we top, I'd rather not be. Thanks.)

  • kidblack - 2011-05-04 07:57

    Of those 61 countries, about 10 experienced a much more brutal history than apartheid. Thus, apartheid cannot be wholly blamed, as the man on the street sometimes likes to do. I for one know that what my people has gone through (in Colombia), makes apartheid look like a picnic. And even Colombia is showing resurgent job growth. Thus the only thing to blame, really, is South Africa's poor education standard, even poorer government policies concerning labour law, and of course, the welfare mentality with a seemingly bottomless bucket of money supporting those who should be out looking, creating, or bettering themselves for work. And what the man on the street does not realize, is that the 21st century economy requires skills beyond digging holes and piling bricks on top of each other. The BARE minimum is a comprehensive computer literacy, basic grasp of economics, and a good foundation of maths and science. Is that too much to ask?

      piet.strydom - 2011-05-04 19:33

      Yes

  • Sallie - 2011-05-04 07:57

    This is the result of the current policy of AA and BEE. How long still have we to suffer from this?

  • Sallie - 2011-05-04 08:00

    This is the result of the current policy of AA and BEE. How long still have we to suffer from this? The 5 million jobs promised by Government is even further out of reach!!!!!!!!!!!!!!!

  • Born To Fish - 2011-05-04 08:03

    You got to love BEE and our draconian labour laws....

  • Creeky - 2011-05-04 08:08

    If things don't IMPROVE RAPIDLY...I forsee a Mass Protest not dis-similar to what has gone down in the North of Africa!!!! Frightening Figures!!!! Where are those 5 million jobs Zumz so PROUDLY ANNOUNCED a couple of months ago??? I don't see any advances to those ACHIEVEMENTS, but looks like it is ending up in the OPPOSITE DIRECTION!!!! More jobs are being LOST!!!!

  • burtfred - 2011-05-04 08:17

    BEE, Cosatu, Cronyism, Corruption.

  • Bill - 2011-05-04 08:19

    Oh Boy! First in something else again!

  • Christo - 2011-05-04 08:22

    "Government cannot sustainably remain the biggest employer, he said." Government should be focusing on making SA as attractive as possible to get more investments. Current state isn't very attractive yet they are still making stupid changes that effect the economy growth wise like toll gates between 2 very busy cities?

  • dominik - 2011-05-04 08:22

    tell all this to comrade julias, viva anc! who actualy thought they would b able to inherit a succesful country; and maintain and grow it properly.

  • Matt - 2011-05-04 08:26

    Keep voting ANC and we all will be unemployed

  • dominik - 2011-05-04 08:26

    tell all this to comrade julias, viva anc! who actualy thought they would b able to inherit a succesful country; and maintain and grow it properly.

  • Educated - 2011-05-04 08:27

    Thank you ANC!

  • FaxM8 Fax - 2011-05-04 08:28

    Where is zuma's 500 thousend jobs he promised last election ?

  • Tits McGee - 2011-05-04 08:28

    try start a company in this country, CIPRO has taken 1.5 months and I am still waiting. How can you create employment when small business can't get going in a reasonable amount of time. Furthermore I am still waiting for my importers code from customs. It's a joke. If I could actually start doing business I might find the need to employ personnel.

      kidblack - 2011-05-04 17:28

      Yes Tits... I registered a company in the UK at 09:15 on 14 April 2011. When did I get confirmation that my company is registered and ready to trade? 16:25 on 14 April 2011. Thats... lets see... 7 hours. Two days later I employed my first 2 employees. Thus, this is me on a plane going to run my business from the UK. I could have employed (skills willing) about 6 people in South Africa by the end of 2011. Thats not happening now.

  • neo_acheron - 2011-05-04 08:28

    Yeah, how many "jobs" did the ANC create?

      Graeme - 2011-05-04 14:08

      They only need to create sufficient for their comrades! Screw the rest of the people

  • Rapier - 2011-05-04 08:28

    The ANC Labour, Employment, training, education, etc., etc., etc., policies are simply not working. It is very sad, because we should ALL, across the racial spectrum, be moving forward as a Nation. They talk munificently, about 5 MILLION jobs - but what continuously escapes them is that no GOVERNMENT makes jobs - A Government creates the ENVIRONMENT for jobs, and then private enterprise will employ people who are available. What people like Malema and his cadres are espousing, i.e. that Government takes over the mines is rubbish - they are more likely to employ "Mining Engineers" who fit their required profile, and are inept. The recipe they are trying to apply, including the case that NZIMANDE has just lost against Ivor Blumenthal are doomed to fail. The people who need jobs are suffering under a Government that has lost its way a long time ago.

  • CdnMoose - 2011-05-04 08:28

    Time to get off the gravy train ride and buckle down. Talk of nationalising the mines, meddling in the training sector, union demands and a general lack of productivity brings POVERTY!!!. Too often our ruling elite seems to think we live in some kind of a bubble where world forces don't impact on South Africa. Well here is the new reality. A lot of country's offer better opportunities for job and wealth creation and one fact that always seems to elude governments, unions and the like is that money moves. It can go to any place it likes and it always prefers better conditions, not worse. So to our government and it's partners, your chickens are coming home to roost, and they are pretty pitiful chickens to say the least. YOu can't generate wealth by taking from others or printing money ( Zimbabwe proves that). Rather growing the economic pie spreads more wealth for all, and that growth has to start with education and opportunities for all. Otherwise, be prepared for less and less and forget the Chinese. THey will take what they need then be gone. Thinking otherwise is just living in a fool's paradise.

  • Tits McGee - 2011-05-04 08:29

    try start a company in this country, CIPRO has taken 1.5 months and I am still waiting. How can you create employment when small business can't get going in a reasonable amount of time. Furthermore I am still waiting for my importers code from customs. It's a joke. If I could actually start doing business I might find the need to employ personnel.

  • Zion - 2011-05-04 08:34

    The government, Zuma and the unions have been actively fighting joblosses and proclaiming job creation. Huge amounts of money has been set aside but the joblessness trends remain downwards. So many promises have been made and one would expect at least something good will arise out of those promises. Or they may remain just that: promises.

  • Tjakkie - 2011-05-04 08:36

    and with the Department of Mineral Resources closing mining companies left right and centre for alegedly safety reasons does not help the situation.....in fact it makes it even worse

  • Thamie_Durba - 2011-05-04 08:38

    How many countries are there in the world? How are labelled the worst when only 61 were surveyed. This is typical SA bashing!!!

      clark - 2011-05-04 14:05

      - Such surveys would only include countries with a certain GDP minimum. Hence many countries , like say Lesotho, are excluded. The bashing you talk of, is a true reflection of our economic demise,for which can only be blamed on the useless Anc govt.

      Oryx_ZA - 2011-05-04 17:49

      even if we exclude the ranking compared to the rest of the world...do you think the fact that 36.5% of our population who can work do not have jobs sounds like a good figure?

  • Shawn - 2011-05-04 08:39

    the only job government is creating by employing more public servants is for me to stand two days in their buildings to get a single paper with a few words written on it. keep it up! Break a leg guys!

  • WOLLE 101 - 2011-05-04 08:40

    The problem is not that we are unable to create jobs for people, the problem is that a lot of people don't want to work and want "Their Government" to look after them. The problem is are attitude and unwillingness to work for what we have. Obviously this is a generalization, but it has been my experience.

  • WOLLE 101 - 2011-05-04 08:43

    The problem is not that we are unable to create jobs for people, the problem is that a lot of people don't want to work and want "Their Government" to look after them. The problem is are attitude and unwillingness to work for what we have. Obviously this is a generalization, but it has been my experience.

  • Appietrader - 2011-05-04 08:46

    Looks like the private sector don't employ people, WHY? Maybe to militant labor unions and very restrictive labor laws? Maybe my wrong assumption?

  • simon - 2011-05-04 08:48

    Why is SA so often at the top of the list for the bad things ? Bad schooling, bad public hospitals, deteriorating infrastructure. All handed over by the previous regime in good working order. Surely it is time for a change of government ?

  • Andrew - 2011-05-04 08:49

    as a business owner i have not replaced staff that has left, just in my small business 8 jobs have been lost, it is just not worth my efford and money to employ staff and then have to ask them what they would like to do with my investment, would you invest in some thing you have no control over and then still get hit with heavy cost. now i use my skills for me and me alone.

  • michaelp1 - 2011-05-04 08:49

    And Comrade Vavi continues to keep his ears closed...and continues to be part of the problem. When will COSATU wake up to the fact that they are one of the biggest causes of the social ill's we have in South Africa.

  • outsidr - 2011-05-04 08:49

    Obviously government policies of BEE and strict labour laws are failing. For the public sector to hire staff is risky, as the regulations are punitive. Strong unionisation also scare away potential employers. There is still a misconception that there is a bottomless bank in the pockets of a few taxpayers to supply welfare to the many.

  • Concerned - 2011-05-04 08:51

    I don't understand these figures. If the population is 49 million, and (according to a study done in 2009) 48% is between the ages of 18 - 65, the labour pool is about 23.5 million. In the article "Alarm over 1.9m jobless youths" it states that the 1.9 million unemployed youths represent 43.4% of the total unemployed. This means there are 1.9*100/43.4 = 4.4 million. As there are only approx 5 million taxpayers, how does this tie in? Surely it means the real number unemployed is in the region of 23.5m - 5m = 18.5m? Or does it mean there are 16 people not paying tax?

      Oryx_ZA - 2011-05-04 17:52

      tax payer is someone who earns over 6k a month. So just because you are employed, does not mean you are a tax payer (besides UIF) answer your question?

  • FaxtoEmail - 2011-05-04 08:51

    Yet The government has forced the private sector into a state of no-hope for starting new business... Staffing has become a nightmare, skill shortages, and requirements for BEE force employers to relook at situations.... What is the government actually going to do about Tax Rebates, and other benefits to the commercial and private sector, to initiate and SUSTAIN employment? Enterpise development..Apparently we have a minister for this?? What have they actually done that can be seen to have made a difference??

  • Concerned - 2011-05-04 08:57

    I don't understand these figures. If the population is 49 million, and (according to a study done in 2009) 48% is between the ages of 18 - 65, the labour pool is about 23.5 million. In the article "Alarm over 1.9m jobless youths" it states that the 1.9 million unemployed youths represent 43.4% of the total unemployed. This means there are 1.9*100/43.4 = 4.4 million. As there are only approx 5 million taxpayers, how does this tie in? Surely it means the real number unemployed is in the region of 23.5m - 5m = 18.5m? Or does it mean there are 18 million people not paying tax?

      Margaret2 - 2011-05-04 20:28

      There are many workers who earn below the tax threshold of R59,750 per annum taxable income.

  • crackerr - 2011-05-04 09:02

    What can one say - anyone. We can expect worse. Some fundamentals will never change. Allow the talented to share their talents with the rest of us without penalizing them with having to carry the untalented and lazies. Stop the unrestrained streaming into the country of citizens from other countries. Stop the unrestrained procreation in this country. Stop the lying and dishonesty of the Malemas who have really only the acquisition of assets for themselves and the their cronies in mind. They think we are all fools and the they are harming the economy. Only qualified and trustworthy incumbents in positions of responsibility please. Stop blaming the past for our ills. So easy and handy, neh? Lying and distortions by the ANC and its so-called alliance partners will not save this country.

  • David - 2011-05-04 09:04

    Grim facts of life when a government and its so called youth league talk about nationalisation, what do they think that private international companies will invest and take the risk of being taken over? We can keep blaming the world economic crisis as we do the Apartheid era I suppose.

  • Yasr - 2011-05-04 09:12

    These stats blow! Come on guys (ANC + you and me), we can do much better.

  • Wernerkwane - 2011-05-04 09:13

    It is because the ANC is make it more and more difficult for SME white companies to survive. We have gone from 124 Permanent black staff to just 18, because ANC Limpopo refuses to award us construction tenders (although we tendered the lowest amount on several projects)

      Nasdaq7 - 2011-05-05 15:25

      It is racism. It seems the whites want to go one direction and the blacks another direction. Instead of both working together in one direction. Oh well I bet you a million bucks the ANC political organization will lose votes because they are trying their best to be the national party of old.

      BigD - 2011-06-10 06:20

      That is because of the Gov policies. You need BEE to get contracts. This BEE portion will double the contract price. That 50% extra money to be paid out is for no value in contract other than enrich the comrades. That is why SA is sinking so fast, no real value for money spent on tenders awarded. The anc dont really care if there is value for money as long as the BEE format is followed.

  • hi1@24.com - 2011-05-04 09:15

    The way America dealt with this after the depression was to offer training, training, training from plumbing to building, road making and electrical training. The people then started their own businesses and uplifted their own standard of living and the level of service to their own communities. In Japan after the war training was in the form of comic books. It seems as though we misuse the most powerful medium for diseminating information, TV, and rather have it churn out violence and expectations, a terrible combination. This country, government, business and everyone should look for ways to increase employment because only ill can come from so many impoverished and frustrated youth.

  • mev - 2011-05-04 09:15

    "We don't understand the problem" Uhm... WE (a select few) do actually understand the problem. Unfortunately a yellow t-shirt is enough of a compensation to the masses, who by the way suffer the most. Tsk tsk tsk

  • AllHoliday - 2011-05-04 09:16

    With 25% of the polulation unemployed, I believe we have a serious crises on our hands. In another article today I see that 1.9m youths are jobless, which mean 43% of new entrants in the labour market are unemployed, this show that we have a serious problem. Our government will have to look seriously at infrastructure to secure economic growth and also seriously looking at immigration and combating illegal immigrants. How can we feed a nation when we have such a great number of the population being umemployed??

  • Theo - 2011-05-04 09:19

    Oh yes, government can, but they will raise taxes to finance the job creation, adding no benefit to the country's GDP. Just look at africa, SA is on the same route. Total ineffective government.

  • Rustique - 2011-05-04 09:22

    Thank you COSATO and ANCYL.. Unrealistic wage demands and Idiotic Nationalisation babbling will still worsen the situation. WELL DONE

  • Ricksta - 2011-05-04 09:28

    This is why we must all vote ANC, so that the unemployment rate goes up even further in the years to come !

  • PMG - 2011-05-04 09:50

    Dont worry Jacop the dancing queen promised millions of jobs,Bwah,ha,ha,ha,ha,ha.Get rid of COSATU and the job market will immediatly improve.

  • clark - 2011-05-04 09:58

    - No surprise whatsoever. In reality ,unemployment is likely to be around 45% , and rising. A situation created entirely by the Anc's failed economic policies. Oh, but wait - Zuma,Patel and Gordhan reckon they will create 1,5 m jobs in no time. Yeah sure and pigs will fly. The Anc seeds of destruction have been planted.

  • Wes - 2011-05-04 10:07

    We always get high scores in the negative and low in the positive I wonder why?

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