“The latest disappointing unemployment figures for the second quarter of 2019 are yet another big wake-up call as to why it is necessary to turn the economy around sooner rather than later.”

This is according to Prof Raymond Parsons, a well-known economist and academic from the North-West University (NWU) Business School.

He says what is especially worrying is the level of youth unemployment, which is now over 54%.

“The economy is clearly struggling to create jobs on a sufficient scale and the policy environment remains uncertain. Boosting investor confidence and higher economic growth must therefore continue to be overriding priorities to bolster South Africa's economic performance.”

According to Prof Parsons, the South African economy not only needs to get on to a higher growth path now, but must also maximize the number of jobs created at any given growth rate. “Job-rich growth is therefore required to improve the outlook. Rising unemployment is otherwise inevitable, if growth rates remain below 1% and if appropriate economic reforms are not implemented.”

He says the worsening unemployment picture is also a strong reminder that an update is required on the 42 recommendations made at the Jobs Summit in October 2018, and to what extent they have been implemented. 

“In light of the latest unemployment trends in South Africa, more realistic targets for future job creation will now also need to be set.”