Business

South Africans Struggle to Survive as Unemployment Hits 11 Year High

Last updated on September 11th, 2021 at 03:30 pm

South Africa’s unemployment rate jumped to its highest since the global financial crisis more than a decade ago, data showed last week, piling pressure on a shrinking economy and President Cyril Ramaphosa’s pledge to deliver a turnaround.
The increase in joblessness was preceded by a sharp rise in jobless claims from the Unemployment Insurance Fund (UIF) between 2018 and 2019. Claims rose 21% to 9.2 billion rand, $60.3M the labour department said.
“The increased payment in the unemployment benefit could be attributed to retrenchments that have plagued the country due to subdued economic growth,” the Department of Unemployment and Labour said.
“ The increased payment in the unemployment benefit could be attributed to retrenchments that have plagued the country. ”
Job cuts across a host of sectors are set to continue into the next few years.
“Like, it’s month end, now I have to be looking for specials, my little brother’s got a son. I have to go buy nappies. I have to be looking specials, I have to go buy food. I mean, I’m the only sole breadwinner at the age of 30. What else, it’s traumatic,” said Alexandra Resident, Lindiwe Mafa.
In February, the National Treasury said unemployment payments would increase to nearly 16 billion rand about $1.073B by 2021,
“So I think South Africa has been growing structurally like a developed country. So the sectors that have been growing fast have been sectors like the finance sector, construction sectors and these sectors belong to the non-tradeable sectors. So these are sectors that cannot be traded and we cannot get revenues from them,” said Economic Analyst, Dr Thabi Leoka.
The unemployment data also showed about 8.2 million, or 40.3%, out of 20.4 million people aged 15-34 years, were not in employment, education or training,underlining the social and political dangers posed by the high jobless rate.
Labour unions which supported Ramaphosa’s campaign have threatened to embark on strikes over retrenchments.

The ruling ANC gave tentative support of the Reserve Bank’s mandate last week, but said it wanted it nationalized, a move the bank’s governor has warned was scaring off investors.

Albert Echetah

Recent Posts

Pastef party led by Ousmane Sonko wins historic election victory

Senegal's ruling Pastef party has won a resounding victory in the legislative elections, taking130 of the 165 seats in parliament,…

November 22, 2024

Famine Risk Reaches Critical Levels as FoodCrisis Deepens In Gaza

Gaza’s hunger crisis is not only statistic, but a set of narratives such as Yasmin Eid, amother of six, who…

November 22, 2024

Kenya Launches Official Probe intoUgandan Leader’s Alleged Kidnapping

The government of Kenya announced that it is looking into the suspected kidnapping ofKizza Besigye, a well-known opposition politician from…

November 22, 2024

At least 7 members of the Nigerian security forces are missing after insurgentsambushed their convoy

A team of 80 security agents tasked with protecting the electricity grid was ambushed onMonday in Shiroro, Niger State, by…

November 21, 2024

Cryptocurrency Gains Momentum inAfrica Amid Global Shifts in Trump’sElection

Cryptocurrency becomes the new thing in Africa. People shift for stable alternatives aftertheir unstable local currencies. Many people believe Donald…

November 21, 2024

UAE Delivers Lifeline: 30,000 Food BasketsBring Hope to Sudanese Refugees in Uganda

UAE has also distributed 30,000 food baskets to Sudanese refugees in Kiryandongo refugeecamp Uganda to benefit nearly 100,000 affected people.Aid…

November 21, 2024

This website uses cookies.