Streaming issues? Report here
702 logo Gradients 702 logo Gradients
The Midday Report
12:00 - 13:00
volume_up
volume_mute

Up Next: The Azania Mosaka Show
See full line-up
The Midday Report
12:00 - 13:00
Home
arrow_forward
Business

The number of unemployed people in South Africa is scary - and growing

23 June 2020 6:36 PM
Tags:
Tito Mboweni
Lockdown
COVID-19
Emergency Budget
budget2020

Although many businesses that opened after lockdown report a surprising demand, economists are not getting their hopes up.

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
Picture: 123rf.com

Listen to the full interview below.

Get the 10 most-read articles of the week from Bruce Whitfield’s The Money Show, emailed to you every Friday morning.


23 June 2020 6:36 PM
Tags:
Tito Mboweni
Lockdown
COVID-19
Emergency Budget
budget2020

Recommended

More from Business

160622Stickman-gif.gif

Shapeshifter - SA animation company Triggerfish now in Ireland

1 July 2020 10:23 PM

CEO says Stuart Forrest says Ireland is where the animation industry is booming and they have been doing a lot of work there.

Share this:
Read More arrow_forward

Cars-For Sale-Automotive-Industry-Dealership-Vehicles-service-wheels-123rf

Market Commentary

1 July 2020 9:18 PM

Chris Steward, portfolio manager at Ninety One, says the PMI number in particular is looking a little better.

Share this:
Read More arrow_forward

Kauai strawberry smoothie

Real Foods' Kauai is not chicken about expansion

1 July 2020 8:42 PM

Real Foods CEO Dean Kowarski says they have seen a lot of opportunities since the relaxation of regulations.

Share this:
Read More arrow_forward

sugar-cane-tongaatjpg

Tongaat Hulett fined R7.5-million for publishing false financial results

1 July 2020 7:55 PM

Financial Mail editor Rob Rose says it seems like the JSE felt like it had to do something and made this token sanction.

Share this:
Read More arrow_forward

medicine pills drugs

Drug profits - a necessary evil or something that needs to change

1 July 2020 7:15 PM

Using profit to solve health issues does not work in a pandemic, perhaps at all.

Share this:
Read More arrow_forward

Naked Insurance

Car insurance from R180 per month – and you don’t pay if you don’t drive

30 June 2020 8:03 PM

Meet Alex Thomson of Naked Insurance, a high-tech company with vastly lower operating costs than most traditional insurers.

Share this:
Read More arrow_forward

Marmite 123rf 123rfbusiness 123rflifestyle

Axe (aka 'Lynx') deodorant has a new scent - 'Africa and Marmite' (not kidding)

30 June 2020 7:25 PM

"We’ve decided to step it up," says Lynx. "With Lynx Marmite, we’re bringing the world of food into the fragrance category." LOL!

Share this:
Read More arrow_forward

Yebo Fresh

Township online grocer Yebo Fresh secures investment from Israeli-Canadian fund

30 June 2020 6:36 PM

Bruce Whitfield interviews Jessica Boonstra of Yebo Fresh, an affordable online grocery shop with township customers.

Share this:
Read More arrow_forward

Sock with a hole and toe sticking out recession economy 123rf 123rfbusiness

It feels like this economy's in a death spiral - Bruce Whitfield, The Money Show

30 June 2020 6:29 PM

South Africa’s economy shrank by 2% in Q1/2020, its third consecutive contraction. Bruce Whitfield interviews Prof Adrian Saville.

Share this:
Read More arrow_forward

apppng

Getting fast-food delivered in townships using KasiMenu app

30 June 2020 5:12 PM

App founder Reneilwe Aphane says their app doesn't require too much data for you to place your order.

Share this:
Read More arrow_forward