Moneyweb writes that the recent announcement that SA’s unemployment rate declined in the quarter to June 2022 was met with relief and a note of optimism, but even a cursory look at the figures shows that celebrations are premature.
For one thing, the unemployment rate of 33.9% means that nearly eight million people are still searching for jobs – without success. If one adds the 3,568,00 discouraged work seekers to the 7,994,000 who are actively job hunting and the number rises to more than 11.56 million people who would actually like to work and improve their lot in life. Thus the expanded unemployment rate in SA is still very close to 45%, compared to the 33.9% according to the narrow definition of unemployment. The Bureau for Economic Research at Stellenbosch University noted in its weekly economic review that “even with the better job numbers, the level of total employment remains about 860,000 jobs below the pre-Covid level”. Meanwhile, surging inflation is adding to the hardship of households struggling to survive with too few breadwinners. Consumer price inflation in SA hit a 13-year high of 7.8% in July – with food inflation especially worrying. In particular, the prices of staple foods such as bread and cereals have increased sharply over the last year, by a massive 13.7%. Expectations are that inflation is bound to stay high, and specifically food inflation. Meantime, the prices of electricity and other household fuels increased by another 8.1% (off an already high base), while the 56% increase in petrol and diesel has seen soaring transport costs for people using their own cars as well as those relying on public transport.
- Read the full original of the excellent report in the above regard by Adriaan Kruger at Moneyweb
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