|
Related Topics |
|
We take a look at the latest unemployment rates as published by Statistics South Africa and break the unemployment numbers down per province in South Africa. Sadly for South Africans though is the fact that unemployment numbers are still sitting close to all time high levels.
|
|
So just how bad is it?
The bar chart below shows the latest unemployment levels (Q4:2018) for all of South Africa's provinces as well as the national average. It also shows the unemployment levels as measured during the prior quarter, Q3:2018. And it is not a pretty picture for South Africans. With the official unemployment number showing one out of every four people in South Africa looking for work, cannot find employment. This is one of the single biggest issues facing South Africa. But while one has to worry and be concerned about the high unemployment rate, even more concerning is the fact that 17.5 million people receive social grants from government. So a lot of these people dont even see the need to work and is not actively looking for employment, if they were included in the unemployment numbers (basically using the broader definition of unemployment), one out of every 3 people in South Africa of working age do not have a job.
So Limpopo has the lowest unemployment rate, closely followed by the Western Cape. At the other end of the spectrum the Eastern Cape had the highest levels of unemployment during Q4:2018 closely followed by the Free State. The summary below shows the inflation rate per province, from lowest to highest as recorded during Q4:2018.
- Limpopo: 16.5%
- Western Cape: 19.3%
- Northern Cape: 25%
- North West: 26.6%
- South Africa: 27.1%
- KwaZulu-Natal: 28.5%
- Gauteng: 29%
- Mpumalanga: 32%
- Free State: 32.9%
- Eastern Cape: 36.1%
President Cyril Ramaphosa said in the State of the Nation address that unemployment and job creation is South Africa's biggest problem. Well to an extent we agree, but we feel that comes a close second to our biggest problem, which is the fact that to many people receive grants and live of it (in fact in the @SONA2019 the president stated 17.5million people receive grants), while the tax paying population of 4.9 is extremely small compared to those receiving government hand outs. Basically for every one person paying personal income tax, 3.6 people receive a social grant. A tax revolt is not out of the question, as something has to give as the current situation is unsustainable.
We are a welfare state. And the problem South Africa is facing is that the tax net is not broad enough, so those paying the bulk of the personal income tax is carrying a large number of people living on welfare in South Africa. This is totally unsustainable and needs to be addressed. Otherwise those paying the taxes will leave the country and go somewhere where they feel their tax money is better spent on providing services to citizens, instead of paying grants to citizens.
We are a welfare state. And the problem South Africa is facing is that the tax net is not broad enough, so those paying the bulk of the personal income tax is carrying a large number of people living on welfare in South Africa. This is totally unsustainable and needs to be addressed. Otherwise those paying the taxes will leave the country and go somewhere where they feel their tax money is better spent on providing services to citizens, instead of paying grants to citizens.
Sadly for the millions of people flocking to Gauteng looking for jobs, the unemployment rate in the province is getting ever higher, with the supply of labour far outstripping the demand for labour. Most people making the move to Gauteng to get jobs, will end up jobless and staying in appalling conditions across the province as the infrastructure of the province cannot deal with the pressures placed on it. There is continued strain on the province for housing, water, electricity, sanitation, health to name but a few. It is the smallest province in terms of land size, but by far the biggest province in terms of population size. See our population density map for more. Something has got to give as this is unsustainable.