South Africa’s unemployment rate is heading to 40%

SOUTH Africa is expected to generate almost two million jobs by 2030 – but this is not near enough to absorb the people coming into the workforce, data from professional services firm PwC shows.

“Our upside scenario falls short of the 4% real GDP growth needed to bring the unemployment rate back to 30%. Our current macroeconomic outlook sees real GDP growth moderating to a new long-term average of around 1.5% from 2024 onwards.

“Based on our statistical analysis of the relationship between economic and employment growth, this growth pace could create nearly two million jobs by 2030.

“However, at the same time, the country’s labour force will continue growing as more people enter the labour market after finishing secondary and tertiary education. Under our baseline scenario, the new jobs created towards the end of the decade will not be enough to absorb all of these new (unemployed) workers.”