Fin24

SA's jobless rate rises again

2011-07-28 14:11

Pretoria - South Africa’s official jobless rate rose to 25.7% of the labour force in the second quarter of 2011 from 25.0% in the first quarter, a report showed on Thursday.

The total number of unemployed people stood at 4.538 million in the three months to June from 4.364 million in the first quarter.

Mandla Maleka, economist at Eskom, said the rate was still "very high".

"It shows unemployment is not moving around the 25% number.That testifies to the structure of our economy, that we are not creating jobs in areas where we need to create jobs, in labour intensive sectors. This is now evidence to that.”

The government has singled out unemployment as a major challenge, after about a million jobs were lost in 2009 during the recession.
 
South Africa is proposing sweeping changes to labour laws intended to increase job security for temporary workers, but economists expect the shake-up will make unemployment worse and ramp up costs for employers.

Comments
  • zackie - 2011-07-28 14:20

    unemployement is a major challenge but stupid anc policy and unions gives rise to this

  • Tolerant - 2011-07-28 14:34

    Gov. and Labour: You should rethink the labour laws, you are losing the battle.

  • edalsg - 2011-07-28 14:35

    Dream on --more like 35% . Add ANCYL .

  • MoZaHo - 2011-07-28 14:36

    What about all the jobs the SWC was supposed to produce? What about all the jobs Zuma promised? Lie after lie after lie. But yet, the sheep still vote....

  • SilentGenius - 2011-07-28 14:45

    With new labour laws on the table, unemployment will rise without any doubt! Labour strikes on the increase again for double digit wage increases will also help to increase unemployment. Its a fact...the more power you give the workers, the less of them will have work eventually, sometinhg not understood by trade unions and government.

  • Katt - 2011-07-28 14:46

    striking to demand a higher than inflation increase = pushes up inflation pushing up inflation = companies suffer so they lay off people or best case scenario, they can't hire any additional jobs unions are great, and i believe they have a place in our economy, but let's face it - they just want to protect their members (because they pay fees). They do not care about job creation (i.e. people that aren't already in their union). SO they strike for unreasonable pay rises irregardless of the effect it will have on inflation (and therefore unemployment) They want more stringent labour laws = you can't fire/replace someone with someone who would benefit your company more = no job creation. Also = employers that are afraid of hiring (because then they can't lay off people in hard times). This all = more strikes for higher wages because only 1 of the people in your family has a job because of unemployment. Strikes (for increases above inflation) push up inflation = the whole cycle starts again.

  • onthefence - 2011-07-28 14:49

    We are not creating jobs full stop. But the ANC will have land grabs and nationalisation - then when it all falls down apartheid will be the blame

  • scott - 2011-07-28 14:54

    yes the economists agree too. South Africas future looks worseningly bleak.

  • birdman - 2011-07-28 15:04

    Do away with trade unions. Ban them! This way, workers will get paid the correct wages for the job. Job creation will increase as more unskilled people will be needed to fill unskilled jobs currently occupied by "unskilled overpaid workers". This will create a "right man for the job" market, and in order to improve your pay, you will have to improve your skills level. Noone to bargain for you but yourself! This will create a remuneration package whereby your pay will be in direct proportion to your skills. A sweeper is a sweeper until he does something about improving his lot. It's up to him. Currently the trade unions want a sweeper to earn the same as a skilled worker - that's rediculous! The skilled worker then says - "I might as well hang on a broom all day and get paid the same"! Ban Trade Unions!!!

  • DEVILS SON - 2011-07-28 15:10

    And rising, we took delivery of our fleet of smart robots to do all our welding, thats 85 welders soon to be unemployed, strike got your raise but since its unaffordable the boss took the liberty of automating the largest area in our workshop. just a handful of qualified technicians and 10 times the productivity, almost zero repair rate,no lunch breaks, tea breaks, no striking, no increases, no friends clocking in for friends, no hassles, sad but tats what happens i guess, im friends with alot of those guys and i feel for them but the choice was not mine to begin with,

  • amdisgusted - 2011-07-28 15:12

    Yet, one can only claim UIF every four years. Why can we not draw our accruals every time a contract ends? When is someone going to fix manyi's gross mistake!

  • Rustique - 2011-07-28 15:22

    Now go and read the section on strikes and understand the reason for unemployment.

  • WiseOwl2 - 2011-07-28 15:24

    Eish - and we voted ANC ????

  • Thouca - 2011-07-28 15:29

    sitting here wondering why we would be shedding labour intensive jobs?....any theories , mr vavi?

  • amabok - 2011-07-28 15:31

    The jobless rate should exceed 30% by year-end if the Unions have their way in wage negotiations.

  • vambozha mutemi - 2011-07-28 15:33

    no no no its: SA's illiterate rate rises again! Too many jobs check the internet, but no qualified candidates!

  • Abrie - 2011-07-28 15:36

    The unwanted foreigners supposed to be deported?? This will affect the numbers positive.

  • Max - 2011-07-28 15:38

    If there are 50 million people in South Africa, and 25% of those are jobless, that means that there should be 37.5 million people with jobs. So, why is there only 5 million people paying tax while 15 million is doing nothing and waiting for their monthly handouts? Ok, ok, I know a lot of the 50 million are under-aged, but is there some-one with real stats? Oh, and by the by, where are the 1 million jobs promised by Zuma?

  • concerned - 2011-07-28 15:38

    The current labour laws do not encourage me as an employer to increase my labour force, i try and get along with my current staff compliment and when i run a couple of months in "peak period" i use contract / casual labours & this will certainly put a stop to that as well. The unions with their unreasonable wage demands stop me from supporting the additional staff during the "slow" months

  • Theart - 2011-07-28 15:41

    I am a little confused here. Trevor manual said that 41 out of 100 people don't have work. That's 41% and not 25.7%. What am I missing here?

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