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Reasons why South Africa has high record of unemployment rate

The continent's economy has hit record levels, with young people and women hardest hit New data shows that around 7.8 million South Africans were unemployed in the second quarter of this year, the highest since 2008, according to Statistics South Africa (StatsSA) released on Tuesday, the unemployment rate is now at a record 34.4%, according to a Bloomberg analysis, one of the highest levels in the world.

Most affected are black African women with an unemployment rate of young people between 1524 and 2534 years, according to the StatsSA, the highest unemployment rates of 64.4% and 42.9% respectively. Persistent economic disruption from Covid19, austerity measures, persistent inequality and poverty All government policies were cited as contributing to the weak numbers.

South Africa's foreign investment flows, a key factor in employment prospects, also fell 39% in 2020 to $ 3.1 billion in destruction. Infrastructure and up to 276 deaths. Some of the 40,000 businesses affected could struggle to get back on track, which adds up to an even grimmer picture. Frustration with inequality in South Africa. highlighting the severe inequalities that afflict South Africa.

A World Inequality Lab report, cited recently by Bloomberg in its analysis, found that "the richest 1% of South Africans own more than 55% of the wealth" while "the poorest 90% own only 14%". As a result, frustrations build up. Business-friendly reforms are urgently needed to stem this deteriorating trend and bleak outlook, says Chiedza Madzima, head of Operational Risk Research at Fitch Solutions in Johannesburg.

.About 3.4 million or 33% of South Africans between the ages of 15 and 24 were “unemployed, uneducated and unskilled” during the reporting period. "Poverty, poor income prospects for young people, inequality and unemployment will lead to recurring social unrest and there will be more calls for support for welfare," Madzima said.

A group of young entrepreneurs in South Africa has stressed that the latest unemployment statistics for the country suggest "a lack of effective political intervention" by the government. "So far, the measures have largely been implemented by the government. They point to structural causes of unemployment.

It is high time this government saw that it is failing young people and South Africans in general," said Seal Malinga, president of Youth in Business South Africa. South Africa, the Confederation of South African Trade Unions (COSATU) attributes the sharp rise in unemployment to economic "stagnation". Due to the fact that the government of strict President Cyril Ramaphosa is considering a Covid19 grant of US $ 24 Convert dollars into a basic income grant to ease the pressure.

The grant would benefit around 9.5 million unemployed citizens.Around a third of the country already depends on social benefits as one of the main sources of income.

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