Thoughts on South African and international politics and culture

Thursday, November 03, 2005

SA Economy Growing Jobs
According to the latest Employment Report, SA is adding over 30 000 formal jobs a month, which is in equilibrium with monthly new job entrants. The study uses UIF figures and other data that are not used by Stats SA in computing their employment figures. Mike Schussler, author of the report, stated that this may explain Â?what has happened to new car sales, why house prices are at these ridiculous levels, why three times as many people are flying through Johannesburg International Airport, why VAT collections are so much higher than expected.Â? These figures still fall short of government's targets to halve unemployment by 2014, but one must remember that the informal sector will also have been adding jobs unseen, that will also absorb new job entrants.

All in all, it's more positive news for South Africa, and for the ANC government itself. Their macro-economic policies are bearing great fruits for our economy, and one can only hope that these policies survive the ANC succession in 2007. With the spectre of Zuma's populism rearing its head, our open economy may be his first target in return for populist support.