The number of unemployed people in South Africa is scary - and growing
Unemployment figures are grotesque to put it mildly - and the worst is still coming.
The official unemployment status for the first quarter is 30.1 per cent - the expanded unemployment number is 50 per cent.
The youth unemployment numbers are at 59 per cent - but expanded is sitting at 70 per cent.
The real pain though, is still coming.
The last time I looked, unemployment was 48 per cent and now it is well over 50 per cent.Nazmeera Moola, Head of SA Investments - Ninety One
In real terms this is ten million people who cannot find a job in South Africa.
What is even more worrying is that lockdown started in the fourth week of March so statistics do not include all the people who have lost their jobs due to lockdown - I would estimate that there are at least a million to a million and-a-half people who lost their jobs.Nazmeera Moola, Head of SA Investments - Ninety One
Some would be re-employed certainly in the hospitality industry - as that comes back on stream but it's going to be a long slow process.Nazmeera Moola, Head of SA Investments - Ninety One
One of the issues has been people deciding that the contractual costs are just too high - rental costs in particular - too much to wait it out until they could trade - so the safer option was just to close down...until a future date.Nazmeera Moola, Head of SA Investments - Ninety One
However, uncertainty around a future date when business will be allowed to resume is the problem.
But I think that bounceback in some areas is going to be faster than expected...I was talking to a local bistro...they have been completely surprised by demand...so I think in some areas demand is going to surprise us but on aggregate a lot of business are going to take a long time because of consumers' changed behaviour.Nazmeera Moola, Head of SA Investments - Ninety One
Listen to the full interview below.
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