ZA Unemployment Falls to 21.9%

[Lycanthrope]

March 2 (Bloomberg) -- South Africa’s unemployment rate, the highest of 61 countries tracked by Bloomberg, fell in the fourth quarter as the construction industry added jobs and some people gave up looking for work.

The jobless rate declined to 21.9 percent in the fourth quarter from 23.2 percent in the previous three months, Statistics South Africa said in a report released in Pretoria today. The number of people out of work fell to 3.87 million from 4.12 million.

Unemployment declined even as South Africa’s economy, the biggest on the continent, contracted for the first time in a decade in the fourth quarter, mainly due to plunging manufacturing output. That has been partly offset by construction which has benefited from increased government spending on roads and stadiums for next year’s FIFA World Cup.

“The gain in jobs is surprising,” said Chris Hart, an economist at Investment Solutions in Johannesburg. “This is something that won’t persist in the first quarter. The economy is clearly shedding jobs. Manufacturing has taken a huge knock.”

Economic Contraction

The economy contracted an annualized 1.8 percent in the fourth quarter compared with the previous three months, the statistics office said Feb. 24. Anglo American Plc, owner of the world’s biggest platinum producer, said on Feb. 20 it will cut 19,000 jobs after metal prices declined. Carmakers such as General Motors Corp. and Volkswagen AG have also scaled back production and cut jobs as exports fell.

The ruling African National Congress, facing an election next month, is under pressure to protect jobs. The government is aiming to lower the unemployment rate to 14 percent by 2014 and the ANC has promised in its election manifesto to make “decent work opportunities” the main focus of its economic policy.

ANC President Jacob Zuma said businesses and workers must “make sacrifices” to help weather the global crisis, Johannesburg-based Business Day reported today, citing an interview with Zuma. He suggested interest rates should be cut further, executives’ performance bonuses must be curbed and workers should donate a day’s wages to a fund that will help to finance those who have lost their jobs, the newspaper said.

“South Africa’s unemployment rate remains far too high by historical and international standards,” Kevin Lings, an economist at Stanlib Asset Management in Johannesburg, said in a note to clients. “The current downturn in economic conditions is expected to impact negatively on employment conditions over the next 12 to 18 months.”

Construction Industry

The construction industry, which employs 1.1 million workers, added 89,000 jobs in the fourth quarter from the previous three months, the statistics office said today. The retail industry, the biggest employer with 3.2 million workers, lost 12,000 jobs in the quarter.

The unemployment rate also fell as 97,000 people without work gave up looking for jobs in the four weeks prior to the survey. That pushed up the number of so-called ‘discouraged workers’ to 1.2 million in the fourth quarter, the statistics office said.

The jobless rate including discouraged workers was 29.3 percent in the fourth quarter, “virtually unchanged” over the previous three quarters, Kefiloe Masiteng, deputy director general of social statistics, told reporters in Pretoria today.

Source: Bloomberg

Woot! Good news :3

 

[iDenTiTy]

Source: Bloomberg

Woot! Good news :3

Question is Do you believe this nonsense?

If so, could I have some of the stuff you smoking?

 

[Morgoth]

only 21%? hmm,,,,

 

[JustAsk]

Question is Do you believe this nonsense?

If so, could I have some of the stuff you smoking?

You cynics are so predictable

If that number was up,that nonsense would have been the holy truth.

 

[ToxicBunny]

How exactly can they claim unemployment has decreased by nearly 300000 people...

SO many people have been retrenched and are out of work, that would mean that the construction industry has created probably nearly 500000 jobs... Not possible..

These stats are BS... from start to finish

 

[Morgoth]

do these numbers include illegal immigrants?

 

[Ice2Cool]

How exactly can they claim unemployment has decreased by nearly 300000 people...

SO many people have been retrenched and are out of work, that would mean that the construction industry has created probably nearly 500000 jobs... Not possible..

These stats are BS... from start to finish

+1

 

[dj_jyno]

At least their 2% decrease is closer to the truth than Statistics SA's 6%.

 

[Sarakael]

Stats SA defines someone who is unemployed as someone who is actively looking for work.

No doubt 300 000 have given up.

 

[PeterCH]

It could all be BS hype.... read below.

Johannesburg - Unemployment data released by Statistics SA on Monday is "closer to fiction than reality," T-SEC economist Mike Schüssler said.

http://www.fin24.com/articles/default/display_article.aspx?Nav=ns&ArticleID=1518-25_2478495

 

[Lycanthrope]

/me decides it isn't worth getting excited any more...

*crawls off and sulks in a corner*

 

[EtienneK]

It could all be BS hype.... read below.


http://www.fin24.com/articles/default/display_article.aspx?Nav=ns&ArticleID=1518-25_2478495

Mike Schüssler... Isn't it the same guy who said oil will reach $200 per barrel at the end of 2008?

I won't listen to too much of what this guy has to say!

 

[PeterCH]

Mike Schüssler... Isn't it the same guy who said oil will reach $200 per barrel at the end of 2008?

I won't listen to too much of what this guy has to say!

Even though his predictions didn't materialise and oil price dropped due to the global liquidity crisis, this guy is analysing current data to draw a conclusion on what the present state of employment is. This isn't the first time Stats SA has cooked figures. Didn't they also exaggerate inflation before resulting in interest rates hikes?

 

[Alan]

How exactly can they claim unemployment has decreased by nearly 300000 people...

SO many people have been retrenched and are out of work, that would mean that the construction industry has created probably nearly 500000 jobs... Not possible..

These stats are BS... from start to finish

Yeah it does have that smell about it

 

[BBSA]

Stats been cooked for the upcoming election?

 

[ToxicBunny]

Never.. they would never ever ever stoop that low would that?

 

[Sneeky]

You cynics are so predictable

If that number was up,that nonsense would have been the holy truth.

rolf, gullible

 

[Blaze786]

How exactly can they claim unemployment has decreased by nearly 300000 people...

SO many people have been retrenched and are out of work, that would mean that the construction industry has created probably nearly 500000 jobs... Not possible..

These stats are BS... from start to finish

Agreed! It is impossible that during this economic "dip" 300 000 people some how became employable

 

[Albereth]

Lies. Damn lies. And Stats SA.