Analysts unpack SA’s doggedly high unemployment
The economy needs to grow at least 6% a year for a decade to begin to solve jobs crisis
Unemployment in SA remained persistently high in the first quarter of 2018 despite a more positive political and economic environment. The unemployment rate remained unchanged at 26.7%. While growth forecasts have been revised upwards on higher confidence, greater political certainty and surprise growth in 2017, SA was not growing fast enough to reduce the unemployment rate, according to analysts. "GDP will have to grow at more than double this rate in order to appreciably absorb new entrants and those that have grown despondent about finding employment," said FNB senior economic analyst Jason Muscat. SA would need at least a decade of growth of between 6% and 8% in order to begin to solve the job crisis, labour analyst Andrew Levy said. Most current growth forecasts are between 1% and 2%. "The population is growing faster than the economy," Levy said. The glaring issue of unemployment will not be addressed if the structure of the economy is left intact, said trade union federation ...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.