A report by Unisa and Momentum shows that economic stagnation will batter the country’s jobs market in the next year.
According to the authors, that is just a conservative estimate and feel that the figure could easily soar past the one million mark, and highlight the stunted growth of GDP as the main source of our economic woe.
Unisa and Momentum also found that the relationship between employment rates and GDP growth have taken a huge as the production elasticity rates dropped from +0.7% to -0.2% in 2015, and its forecast to only crawl up to +0.3% in 2017/18. The authors suggest that getting and then keeping a job will get tougher in the next 18 months, and South Africans should be prepared for unemployment.
It’s clear from available employment figures that many businesses are struggling to survive with the implication that they will on average rather shed more jobs than create more jobs”
“The true cure for a self-made recession is rather political, economic and policy certainty which do not appear to be on the cards for the immediate future.”