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MORE AND MORE PEOPLE SEEKING JOBS: SA’S UNEMPLOYMENT RATE HITS 13 YEAR LOW

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MORE AND MORE PEOPLE SEEKING JOBS: SA’S UNEMPLOYMENT RATE HITS 13 YEAR LOW
What will it take for growing sectors such as travel and tourism to generate more jobs in the current environment? This is a key question given the latest results from Stats SA’s Quarterly Labour Force Survey for Q1 2017.

The report shows that the growth in employment by 144 000 in Q1 2017 was offset by the growth in the number of job-seekers by 433 000, driving an unemployment rate to 27.7% – the highest it has been since September 2003. Here are some more key outcomes from the report:

  • Of concern, 58% of the unemployed were young people aged 15-34, increasing the youth unemployment rate by 1.6 percentage points to 38.6%
  • Unemployment remained high among those with an education level of less than matric at 33.1%. The unemployment rate among graduates remained at 7.3%
  • The number of employed persons increased in seven of the nine provinces between Q4 2016 and Q1 2017. The largest employment gains were observed in Gauteng (81 000), Mpumalanga (62 000) and Western Cape (21 000), while Limpopo and Eastern Cape recorded employment declines of 56 000 and 5 000 respectively.

According to the World Travel and Tourism Council, travel and tourism’s total contribution to direct employment in South Africa was 1 533 000 jobs in 2016 (9.8% of total employment). WTTC predict that this is expected to rise by 6.7% in 2017.  For a sector such as tourism, are we creating enough jobs? The low levels of entry to open a tourism business makes this sector the prime opportunity for entrepreneurs to test the waters, open a business and contribute to the economy, inclusive growth and employment figures. Tweet what you think to us @tbcza.

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