SA unemployment rate tops 25%

In the latest Labour Force Survey released by Statistics South Africa, the unemployment rate rose to 25.2% in the first quarter of 2012, showing that economic growth isn’t near the levels needed to create jobs.

The jobless rate rose from 23.9% in the fourth quarter of 2011 with 4.5 million people unemployed in March as opposed to the previous 4.244 million.

This new information supports the Reserve Bank’s move to leave interest rates at 30-year lows as it tries to balance the need to boost economic growth with the public concern over rising inflation.

Nomura emerging market analyst Peter Attard Montalto said, “Today’s numbers play into our more bearish view on growth this year and that a sharper slowdown in retail will be on the way as aggregate disposable income drops. This also reinforces our view of rates being on hold for longer than consensus.”

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