‘Slumping unemployment rate a sign of resilient economy’

Despite several crises that have rocked South Africa in recent years, it remains a better place to invest in.

This is according to an internationally renowned entrepreneur, Dr Brett Lyndall Singh, CEO of AOM Group.

Singh was reacting to the recently released statistics that show the country’s unemployment rate has slumped to 32,6%, meaning more people have been employed in the second quarter of 2023.

“The results of the Quarterly Labour Force Survey indicate that the number of employed persons increased by 154 000 to 16.3-million in the second quarter of 2023 compared to the first quarter of 2023,” said statistician-general Risenga Maluleke at the announcement of unemployment figures in Pretoria on Tuesday.

Statistics South Africa also noted that the number of unemployed people decreased by 11 000 to 7.9-million during the same quarter.

“The discouraged work-seekers decreased by 94 000 in the second quarter of 2023 compared to the first quarter of 2023, resulting in a net decrease of 1 000 in the not economically active population,” it said.

“The above changes in employment and unemployment resulted in the official unemployment rate decreasing by 0.3% of a percentage point from 32.9% in the first quarter of 2023 to 32.6% in the second quarter of 2023.”

Also highlighted by the national statistical agency is that there was a slight improvement in the unemployment rate, which decreased by 0.3 of a percentage point to 42.1% in the second quarter compared to the first quarter of the very same year.

According to Singh, the recent statistics show that the country is continuing to do well even though there are a plethora of challenges facing the economy.

He commended the country for being constantly resilient even though many things that threatened its investor’s confidence had happened recently.

This include the week-long taxi strike Cape Town, the gas explosions that rocked Gauteng July, as well as the torching of trucks.

“Yes, there are indeed many negative things happening in the country, but the country still stands in a good position for investments and doing business,” said Singh.


“When looking at all these negative developments, we also need to consider the good things that we are doing as a country.

“Even when compared with many African countries, South Africa has financial sector policies that are user-friendly to investors.

“In some African countries such as Mali and other countries of the same calibre, it’s a hustle to make an investment and easily get your money whenever you need it,” explained Singh, noting that South Africa has many black industrialists, mostly women who play a crucial role in the economy.

“Regardless of the negative associations, the majority want to invest [59%] or do business [76%] in South Africa.”

 

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