Unemployment Continues To Rise

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This week Stats SA released their latest unemployment figures which we know are not exactly accurate and are manipulated. Even still the figures do not offer great reading as they dropped from 32.9 to 33.2% for the second quarter which equates to around 140K more unemployed.

These figures are hiding the truth of what is actually taking place and are sugar coated. The real number of people in SA is an unknown quantity due to the open borders and one could add an additional 10-15 million on to these numbers. This is a thumb suck at best and could still be short of the number of people actively seeking work in the job market.

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The increase in unemployment for the 2nd quarter of this year was actually better reading than the first quarter when the figures showed an increase in 291 000 jobs lost. This is still over 400 000 jobs being lost in the first 6 months and this number is only going to increase. One can understand why the government is worried how they are going to pay for this as their tax revenues are shrinking at an alarming rate.

Just to get a scale of how bad this is more than 1 million people applied for 5500 police jobs as there is no other hope of employment. The 13.2 million not economically active or 3.4 million discouraged work seekers totals 16.6 million which is roughly the number who are employed. If you total all groups together you have roughly 42 million which is equating to 40% working and 60% unemployed. You will find many of the not economically active or discouraged work seekers cannot afford to attend interviews as they are earning R350 per month in hand outs via the grans system. This is not enough to live on and transport etc seeking work is expensive. They have no realistic chance of finding any work even if they wanted to.

The great depression back in 1933 was seen as dire and the unemployment rate was 25% and SA has double that figure. If the real figures were released which the government could never do as those figures would cause chaos and uprisings.

The government policies are behind these catastrophic numbers and they want to double down on them. One must also not forget that the US tariffs that went into effect at the beginning of this month do not reflect as yet. These tariffs will only be revealed how impactful they are in about 6 months from now and they will not be great reading.

To say South Africa faces some serious challenges is an understatement and the government does not have any answers. Unfortunately like most countries in Africa SA was relying on hand outs with their begging bowl. Those hand outs have thankfully vanished and they need to fix things themselves which they obviously cannot. The private sector can only do so much and until they fix the open borders this will never improve as millions arrive each year.

There are some crazy numbers stating that 10% pay 80% of the entire tax revenue and many of those are leaving the country as they are sick and tired of being fleeced. If SA was a business you would shut the doors and move on as until there is proper leadership in place meaning all races involved and forget the Black Empowerment nonsense which is definitely not working as the country should come first.

Posted Using INLEO