JOHANNESBURG – Financial analysts anticipated and predicted a 0.3 percentage point rise in the unemployment rate as Statistics South Africa prepared to release the unemployment figures for the initial quarter of 2019 on Tuesday.
The unemployment rate was recorded at 27.1% in the fourth quarter of 2018. It is expected to grow to 27,4% in the first quarter of 2019.
Colossal job losses in the manufacturing and mining sectors had contributed to the skyrocketing SA unemployment figure.
Mining and manufacturing are the crucial sectors and the largest employers of the the semi-skilled workers in SA. Economists predicted and ascribed their anticipation to the losses of temporary jobs due to the festive season holidays and a small growth environment.
According to SABC News Economist and Head of Financial Markets at ETM Analytics Jana Van Deventer according said “Fist quarter GDP numbers are likely to speak to an economic environment that is very weak , we have yet to see any real economic momentum picking up. We suggest that the talks we have seen in Ramaphosa administration so far have failed to generate any meaningful investment into the economy,”
“These things takes time to see the results coming through but at the moment the fixing investment numbers are not looking particularly great so now we have to wait and see whether more aggressive steps are taken to implement that needed policy.” She added.