Unemployment hit a 13-year high in the first quarter of the year as the economy failed to keep up with the pace of people entering the market, statistics released on Thursday showed.
There was also little hope of an improvement for 2017, economists said, as heightened policy uncertainty undermined business confidence and harmed the outlook for growth.
Investec economist Kamilla Kaplan said: “This suggests that the prospects for a meaningful recovery in private-sector fixed investment and employment are poor.”
Nedbank economist Johannes Khosa said: “The outlook for the job market remains uncertain due to weak confidence, weak growth prospects and the difficult policy environment.”
The private sector was expected to delay investment plans, he said, while government caps to support fiscal consolidation would restrict public sector employment.
From January to March, 144,000 jobs were added to the economy. But the gains were offset by the increase in the number of job seekers, which rose by 433,000.
The unemployment rate rose to 27.7% (6.2-million people out of a workforce of 22.4-million.)
Announcing the Quarterly Labour Force Survey, Statistician-General Pali Lehohla said half-a-million jobs were lost in the first quarter, with the agriculture sector shedding 44,000 jobs and the informal sector 14,000. The manufacturing sector, added 62,000 jobs. The Absa Purchasing Managers index, which climbed to 51.5 index points in May, suggests there could be further growth in investment in the sector.
The Manufacturing Circle, a lobby group, is confident the sector has the potential for a million additional jobs.
On Monday, chairman Andre de Ruyt said: “We’re part of an initiative to create a million jobs…. We are looking at plastics and packaging in particular …”
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