Today's Labour News

newsThis news aggregator site highlights South African labour news from a wide range of internet and print sources. Each posting has a synopsis of the source article, together with a link or reference to the original. Postings cover the range of labour related matters from industrial relations to generalist human resources.

newsFin24 reports that according to Lesiba Mothata, chief economist at Alexander Forbes Investments, South African jobs will be lost as a direct result of Friday night's downgrade of SA's long-term local currency debt to junk status by S&P Global Ratings.  

He said it would contribute to a knock-on effect resulting in higher borrowing costs, increased interest rates and tighter lending from banks.  "The entire structure of costs when you have borrowed money in the economy goes up – which means it will be harder for the economy to grow further.  Which actually means that people will lose their jobs," Mothata explained.  SA's unemployment rate currently stands at 27.7%.  Late on Friday evening S&P downgraded SA’s long-term local currency rating to 'BB+' - or junk - with a stable outlook, while rival ratings agency Moody's placed the country on review to be downgraded.

  • Read this report by Moeshfieka Botha in full at Fin24

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