Despite April\u2019s headline inflation lowering to 6.8% year-on-year and forecasts suggesting prices could moderate at a faster pace in the coming months, the recent depreciation of the rand exchange could throw a spanner in the works if the rand remains at current weaker levels for a prolonged period, BankservAfrica said.<\/p>\n
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After two consecutive months of moderate increases in the number of salaries paid into South Africans\u2019 bank accounts, BankservAfrica\u2019s data \u2013 adjusted for weekly payments \u2013 suggests that more than half of these gains were reversed in April, with 123,000 fewer salaries paid<\/strong>.<\/p>\n \u201cThe South African job market is still recovering from heavy job losses incurred from the impact of the Covid-19 pandemic, a challenge amid the low growth reality in South Africa,\u201d Kruger said, adding that not only is the country in catch-up mode, it must also accommodate the constant growth in the working age population.<\/p>\n \u201cWith little indication of a different economic environment in 2023 and an even lower economic growth forecast for 2023 compared to 2022, the job market \u2013 and salary adjustments – are likely to remain lacklustre for the remainder of the year. This is a scenario that could only exacerbate the unemployment crisis,\u201d she said.<\/p>\n “South African policymakers need to seriously rethink current policies and get into action to stem the negative tide and facilitate a growth-friendly environment, without which adequate job creation for this economy would remain an unfulfilled dream.”<\/p>\n Average private pensions, measured in the BankservAfrica Payments Pensions Index (BPPI), continued to reflect good growth.<\/p>\n \u201cIn nominal terms, the average private pension at R10 305 showed a monthly improvement and a 6.4% year-on- year growth,\u201d BankservAfrica noted.<\/p>\n The real average private pension was R9,401 in April, marginally lower compared to a year earlier, but still signalling that the purchasing power of pensioners has been preserved amid the high inflation environment.<\/p>\n
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