Unemployment Rate Shows SA Is In A Crisis

Reports by Bloomberg Rankings confirm that South Africa's unemployment rate is the highest in the world out of 82 countries.
 

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South Africa is now being seen as the country with the highest unemployment rate in the world. According to Bloomberg rankings, South Africa tops the charts of unemployment out of 82 countries. 

Statistics South Africa (Stats SA) released a Quarterly Labour Force Survey (QLFS) for the second quarter on Tuesday. Unemployment has hit a record high of 34.4% which translates to 7.8 million jobless people. This is the highest unemployment rate recorded since the survey started in 2008. 

The unemployment rate was previously 32.6%, and the number of jobless people was 7.2 million.

The former Statistics South Africa Director General, Dr Pali Lehohla, said that the President saying jobs are coming back was not true.

My immediate views are this, at the first quarter of this year, in the state of the nation address, the president said the jobs are coming back. This was based on the study by NIDS-Cram, I knew the numbers were wrong, and the Statistician General confirmed it. 

Lehohla says the highest policy makers in the country are after good news, when the country actually suffers from an unemployment crisis.

He added that NIDS-Cram is important for national income dynamics, but when it comes to the unemployment rate numbers, its exaggerated.  

The former Statistician says its very disappointing that the leaders in the government are only looking for goods instead of finding workable solutions to the crisis. 

The Minister of Education, Dr Blade Nzimande, and President Cyril Ramaphosa are asking the wrong questions and finding the wrong answers, said Lehohla.

He also rejects the reports that education is improving when graduates constitute 11% of the 34.4% unemployment rate. Dr Lehohla added that the leadership and its policies are unable to change the situation that the country finds itself in, and the evidence is clear in the public. 

If poverty is not the priority, then what is the priority? Government is busy chasing after the GDP ratio not the crisis of poverty. 

Over 350 000 people that are not teachers, are deployed in schools to help teachers, that money should have been transferred to agriculture to fight poverty and unemployment, says Dr Lehohla. In addition, he also said the education system is not working. 

The government systems to plan are failing as the result of people who are stealing at the slightest opportunity they can find, said Lehohla. 

SA Reserve Bank Governor, Lesetja Kganyago, noted that the recovery in employment levels following the pandemic was lagging behind. This came after the economy suffered a -7% contraction in 2020 due to the Covid-19 pandemic. 

As the unemployment levels continue to hike in every quarter, government is also at a loss for a solution, but Dr Lehohla says the country has to make do with what it has as the leaders. 

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