SA Unemployment Rate
The latest figures show that 6.2 million South Africans are currently without work.
Our unemployment rate in South Africa
The unemployment rate in South Africa was stable at 27.7% for the third quarter in a row, although still at record high levels last seen in 2003. The expanded unemployment rate, which includes those who wanted to work but stopped looking for jobs, increased by 0.2 of a percentage point to 36.8% in the third quarter. The latest figures show that 6.2 million South Africans are currently without work.
Cabinet approved the National Minimum Wage Bill during its two weekly meeting. The draft legislation will now be referred to Parliament for further deliberation, after which President Jacob Zuma will be required officially to sign it into law. Commentators are worried that this piece of legislation could have an adverse impact on future job creation.
Local equities traded stronger, mostly because of a weaker currency that boosted the rand-hedge counters. The all-share index (alsi) closed the week at 59 638.2 points, up from 58 714.04 the previous week. The rand traded at R14.20 against the USD. The Brent crude oil price gained 4.7% to trade at around $62 per barrel. This had a positive influence on the resources sector that closed a healthy 3.45% higher.
Global equities set record highs again during the past week, against a backdrop of solid economic and earnings growth. The US economy created 261,000 new jobs in October.
US President Donald Trump nominated Jerome Powell to replace Janet Yellen as Federal Reserve Board (Fed) chair. Powell has been a member of the Fed system’s Board of Governors since 2012. If confirmed, Powell is expected to maintain monetary policy continuity, while rolling back some post-financial crisis banking reforms.
The Bank of England’s Monetary Policy Committee hiked its policy rate from 0.25% to 0.5% this week, the first increase in more than 10 years.
South African investors are beginning to speculate about the effects on our status of the ratings agencies’ decision expected around the 24th of this month. I will offer some insights about this in the coming weeks.
SECURITAS – Wealth Management
“If you invest nothing, the reward is worth little.” - Richelle E. Goodrich