Slow growth means unemployment rate won’t change

2013-08-27 16:12

The high rate of unemployment will continue into the foreseeable future as South Africa’s economic growth fails to create enough jobs while most available do not meet “decent work” standards, a report by the department of labour has warned.

The report titled Job Opportunities in the South African Labour Market 2012-2013 was released today.

According to the report, white people, who have enjoyed low unemployment rates, have also not fared well in the job market as unemployment increased in this population group by 1.6% in the past year.

The report also found that found that 65.3% of the 4.6 million unemployed people were long-term jobseekers who had been looking for work for over a year.

“On one hand, this might be as a result of people who are looking for employment lacking certain required skills and experience, but on the other hand this might also be as a result of the economy of the country that does not have enough employment opportunities to cater for everyone looking for employment, as close to two-thirds (59.4%) of the jobseekers did not have matric,” said the report.

The report also speculated that companies were unwilling to hire school leavers “because they need training to build skills and once trained at some expense the skilled workers may leave for other jobs”.

The unemployment rates for Indian and coloured people decreased 0.7% and 0.2%, respectively.

Only 44 000 jobs were created between the first and the fourth quarter of 2012 and the first quarter of 2013, representing an increase of 0.3% between the two quarters, said the report.

“Although the 0.9% GDP increase was recorded in the first quarter of 2013, it was not high enough to support the overall employment and development targets as outlined in the National Development Plan.”

In a statement, the department said the latest figures “prove the belief that the economy is not creating enough jobs and there are also concerns about the quality of the jobs being created recently”.

It expressed concern about the quality of jobs that had recently been created, pointing to these jobs as not conforming to “decent work” policies.

“More and more economically active people are becoming discouraged and leaving the labour market altogether, which could have lasting devastating effects, especially among youth and women,” warned the department.

The report has also sounded warning bells about youth unemployment which stands at 52.9% for people between 15 and 24 years old.

This group remains the highest among all age groups and has been on the increase.

“Statistical data also reflect that there is a lot that needs to be done in as far as gender equality is concerned as 49.1% of the unemployed are women,” said the report.

Join the conversation! encourages commentary submitted via MyNews24. Contributions of 200 words or more will be considered for publication.

We reserve editorial discretion to decide what will be published.
Read our comments policy for guidelines on contributions. publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
Comments have been closed for this article.

Inside News24


10 best dressed men of 2017

And the awards for 2017's best dressed gentlemen go to...


You won't want to miss...

How to open a beer bottle without an opener
WATCH: Man films himself going down water slide upside down as things go very wrong…
WATCH: Conor McGregor: Notorious the trailer
Best date night restaurants in South Africa
Traffic Alerts
There are new stories on the homepage. Click here to see them.


Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.

Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire network.


Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.

Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.