South Africa has shed almost\u00a0half a million jobs in the first half of the year – with things not looking like they will improve any time soon as the country heads for 0% growth.<\/p>\n
Employment data released by Stats SA on Thursday showed that South Africa’s unemployment figures dropped slightly from 26.7% to 26.6% – however 129,000 jobs were still lost in the quarter.<\/p>\n
In the first quarter of the year, 355,000 jobs were lost, taking the total to just under half a million (484,000) with prospects for the second half of 2016 looking bleak.<\/p>\n
Jobs were lost in the services, agriculture, transport and mining sectors, Stats SA said.<\/p>\n
According to economists, South Africa’s 0% growth outlook announced by the South African Reserve Bank<\/a><\/strong> in July, shows how much strain the country’s economy is under, with many sectors facing financial strain.<\/p>\n Some argue that the country is showing signs of already being in a recession – though it has managed to avoid the\u00a0technical definition of two successive quarters of decline.<\/p>\n Finance minister, Pravin Gordhan has said that the country will likely avoid a technical recession, with Q2 expected to show GDP growth – but with the country entering into a highly political period with the upcoming elections and subsequent market reactions, the six months ahead will be tough.<\/p>\n According to financial group Nomura, investors’ outlook on the country is bearish for the second half<\/a><\/strong>,\u00a0with no progress being made on rates, CPI or the current account deficit.<\/p>\n The group also said that the political fallout from the elections is being underestimated, and that a major Cabinet reshuffle by president Jacob Zuma could crush the economy.<\/p>\n \u201cWe still believe that asset prices (including the currency and local rates)\u00a0currently markedly underestimate the political risk premia required into year-end\u00a0after the local elections, as the \u2018war\u2019 between the ANC\u2019s factions resumes and\u00a0with Jacob Zuma exercising (and remaining in) power\u00a0\u2013\u00a0not to mention ratings\u00a0downgrades still looking likely.\u201d<\/p>\n Taking \u00a0market conditions into account, and looking ahead to what is expected to be a turbulent political season to the end of the year, Nomura forecast that the rand – which is currently enjoying a stronger position – will end the year at R17 to the dollar.<\/p>\n This is who is emigrating from South Africa \u2013 and where they are going<\/a><\/strong><\/p>\n How many South Africans can survive a R10,000 financial emergency<\/a><\/strong><\/p>\n South African employers recruit overseas amid ICT skills crisis<\/a><\/strong><\/p>\nMore on South Africa<\/h3>\n