Latest news with #StatisticsSA
The Citizen
10 hours ago
- Business
- The Citizen
How SA's youth make and (should) spend their money
While some consider Gen Z a lazy bunch who want everything for nothing, the truth is quite different according to a survey. South Africa's youth are grappling with deepening financial challenges, including crushing unemployment, limited asset ownership and mounting debt levels, making older people wonder how they make and spend their money. Eighty20, a consumer analytics and research company, analysed people younger than 24, who make up 44.5% of the population. With nearly 30 million people under the age of 24, South Africa's economic future hinges on whether this generation can break the cycle of financial exclusion that currently defines their prospects. The research reveals that of the 6.7 million young people between the ages of 18 and 24, only a million are credit-active. However, among these credit users, nearly half have already defaulted on their loans. With an average monthly income of R3 400 (less than half the national average of R7 000) and a youth unemployment rate of 62.4% according to Statistics SA, financial strain is widespread in this age group, Andrew Fulton, director at Eighty20, says. ALSO READ: SA youth not unemployed, rather under-employed SA's youth mainly use retail credit Among the million credit-active youth, retail credit dominates, with 85% of the respondents holding store accounts. Personal unsecured loans follow at 17%, while 9% have credit cards. In addition, young people represent approximately 4% of South Africa's total outstanding debt, carrying R10 billion in combined obligations. However, Fulton points out that their credit performance is worse than the national average, with R1.1 billion, or 11% of their total debt, currently overdue. This elevated delinquency rate signals particular financial stress within this age segment, Fulton says. MRF's Marketing All Product Survey (MAPS) of 20 000 South Africans shows that the youth are more concerned about privacy when it comes to credit. They prefer that others do not know they are taking a personal loan and would rather take the loan from a financial institution rather than from friends or family. South Africa faces a stark financial inclusion divide among young adults, Fulton says. 'While people under 24 represent approximately 20% of new credit market entrants over the past three months, a few hundred thousand individuals, this figure masks a deeper problem that many young South Africans never enter the formal credit market at all. ALSO READ: The dark picture of youth unemployment in South Africa Exclusion among youth creates two distinct groups Fulton says this exclusion creates two distinct groups: people who successfully access credit can join the formal financial system and participate in the economy, while many others remain locked out, classified as 'thin file' clients due to their lack of credit history. 'Without access to formal credit, these young South Africans are excluded from significant economic opportunities.' A credit score serves as the gateway not only to lending products and favourable terms, but to essential services across multiple sectors. A healthy credit profile enables access to cellphone contracts, rental agreements and can even influence employment opportunities, Fulton says. 'Expanding credit access among young adults represents both individual economic empowerment and broader formal economy development.' However, he says a further challenge lies in how people who do qualify for credit perform: approximately half of young borrowers default early in their credit journey, with most maintaining high-risk credit scores. 'This pattern underscores the urgent need for enhanced financial education and for those in distress to get into debt counselling early.' ALSO READ: Entrepreneurship a solution to youth unemployment – but there are challenges Youth make money with side hustles How do young people make their money to make ends meet? Enter the side hustle economy. Fulton points out that youth unemployment is at crisis levels, with fewer young people in formal employment now than in 2008. Harambee, an NGO focused on youth employment solutions, reports in its quarterly Breaking Barriers analysis that of the one million young people entering South Africa's labour market annually, only 40% find work in the short to medium term, while 30% find intermittent employment but remain mostly unemployed or outside education and training, 20% want to work but never find opportunities and 10% stop seeking work altogether. In addition, for those who are employed, side hustles have become essential to make ends meet. BrandMapp, a survey of South Africans in households earning over R10 000 monthly, shows a notable shift: in 2021, 55% reported having no side activities that create extra income, but this dropped to 49% in their most recent survey. The survey asks for details on these activities and the percentage of people who say they are running small businesses as a side hustle, or taking second jobs in their primary field has grown by 50%. This trend mirrors international patterns, with about 50% of millennials and 46% of Gen Z reporting side hustles. ALSO READ: Minister agrees unemployment statistics should include work in informal sector Kind of side hustles the youth choose The nature of these side hustles varies by demographic. BrandMapp data shows that 'home industry' activities are more common among black married couples, while temporary and shift work in restaurants and bars is more prevalent among white South Africans. Fulton says the intersection of limited formal employment, growing debt burdens and the rise of alternative income sources creates challenges as well as opportunities for South Africa's young people. 'In the face of considerable financial headwinds, many young people are turning to side hustles as a means of creating opportunity in a tough economy, but with the right support structures and a focus on keeping their credit history clean, this generation has the potential to drive long-term, inclusive growth.'
The Citizen
3 days ago
- Business
- The Citizen
SA youth not unemployed, rather under-employed
Can we still depend on Statistics SA's data on unemployment or should we change how we look at people who are not formally employed? South Africa's youth are not so much unemployed as underemployed and uncounted, according to a news report that states Generation Z is far from inactive. According to the results of the Quarterly Labour Force Survey conducted by Statistics SA, the official unemployment rate for the first quarter was 32.9%. For the youth, defined as people between the ages of 15 and 34, the total number of unemployed increased by 151 000 to 4.8 million, while employed youth recorded a decrease of 153 000 to 5.7 million. As a result, the youth unemployment rate increased from 44.6% in the fourth quarter of 2024 to 46.1% in the first quarter of 2025. These figures caused an outcry yet again, with many organisations expressing their dismay at this high rate of unemployment. However, it seems that the youth unemployment rate tells only part of the story. Emerging data, including the newly released Gen Z Economy Report, suggests that this generation is far from inactive. They are not unemployed but rather under-employed, Ronen Aires, CEO of Student Village, says. Student Village, in partnership with futurist, economist and business trends analyst, Bronwyn Williams of Flux Trends, released The Gen Z Economy Report: Cash, Culture and Clout, earlier this month. ALSO READ: The dark picture of youth unemployment in South Africa Youth are not unemployed, just not formally employed This research report shows that Gen Z is not idle. 'They are hustling in the shadows of a broken system that fails to count them, let alone support them. Only 16.6% of Gen Zs identify as unemployed. They are participating in the economy, just not in the conventional ways captured by official data.' The report is based on responses from more than 900 South Africans between the ages of 18 and 30 and paints a picture of a generation shaped by financial pressure and economic uncertainty but defined by grit and ingenuity, Williams says. 'Young South Africans operate outside the boundaries of formal employment today. They are creators, freelancers, micro-entrepreneurs, influencers, digital editors, crypto traders, tutors and resellers, blending education with gig work, supporting themselves through multiple income streams and carving out economic agency in an environment where traditional pathways are shrinking.' Yet, Willaims points out, the metrics still label them as 'NEETs' (not in education, employment or training). She says this narrative is not only outdated but also misleading. ALSO READ: Improvement in unemployment rate, but SA still needs almost 8 million jobs Employment data misses the nuance and leaves an incomplete picture Aires says when data misses the nuance, policies and strategies do too and when businesses, employers and institutions rely on incomplete pictures, they risk missing out on one of the most agile and driven generations yet. Key findings from the Gen Z Economy Report include: Side hustles are the main income source for Gen Z at 21.7%, followed by parental support (20%) and Nsfas grants (17.5%). Most Gen Zs are earning below R5 000 per month, yet 90.5% are saving regularly, despite low-income levels. Savings go primarily toward emergencies (25.75%) and education (19.83%), signalling both anxiety about the future and strong aspirational intent. Gen Z places high value on financial independence, ethical alignment and personalised, digital-first experiences. Nearly 30% are already exploring cryptocurrency and alternative investment platforms, reflecting a mindset that is cautious as well as forward-thinking. ALSO READ: Economy sheds jobs again in first quarter, unemployment worse than year ago Do not underestimate Gen Z Aires says for sectors like banking, retail, telecoms, alcohol and personal care goods, this report should serve as a clear wake-up call as it shows that this generation wants authentic value, mutual respect and long-term relevance. 'Stereotypes about disinterest or irresponsibility do not hold up under scrutiny, as Gen Z is financially literate and looking for meaningful engagement and value from businesses and brands. Young South Africans are navigating a shrinking economy with grit, creativity and pragmatism. 'If we continue to underestimate them, we squander one of our most powerful engines for inclusive economic recovery.' The formal employment outlook may be bleak, but South Africa's youth economy is active, adaptive and growing in influence, Williams says. 'It is time to move beyond outdated narratives and start building real opportunities that reflect the reality on the ground.' ALSO READ: Is South Africa's unemployment rate really only 10%? Capitec CEO also wonders about who is really unemployed The Gen Z report is not the only one to doubt the unemployment data. Gerrie Fourie, CEO of Capitec, said last week that Statistics SA should rethink how it measures unemployment, arguing that when the vast informal sector is considered, the unemployment rate of 32.9% could be closer to 10%. 'We talk about an unemployment rate of 32%, but Statistics SA does not count self-employed people. I think that is an area we must correct. The unemployment rate is probably actually 10%. Just go look at the number of people in the township informal market who sell all sorts of stuff and have a turnover of R1 000 per day. 'To grow South Africa, we must understand what is happening in the informal market. If we really had a 32% unemployment rate, we would have unrest. If you go to the townships, most people have back rooms to rent out; everyone is doing something. If we talk about job creation, let's go out and encourage these entrepreneurs.' NOW READ: Minister agrees unemployment statistics should include work in informal sector
The Citizen
4 days ago
- Business
- The Citizen
Economy sheds jobs again in first quarter, unemployment worse than year ago
Most of the industries in the Quarterly Labour Survey shed jobs during the first quarter of 2025, with only manufacturing adding 2 000 jobs. The economy shed jobs again in the first quarter of 2025, with unemployment also worse than a year ago, as employment decreased by 95 000 or -0.9% between March 2024 and March 2025 as full-time as well as part-time employment decreased. According to Statistics SA, its Quarterly Employment Statistics for the first quarter of the year show that total employment decreased by 74 000 or -0.7% compared to the fourth quarter of 2024, from 10 653 000 in December 2024 to 10 579 000 in March 2025. This was due to decreases in trade that shed 52 000 jobs (-2.2%), community services that shed 17 000 jobs (0.6%), mining that shed 4 000 jobs (-0.9%), business services that shed 1 000 jobs (0.0%), construction that also shed 1 000 jobs (-0.2%) and electricity that also shed 1 000 jobs (-1.6%). Employment in the transport industry remains unchanged, while manufacturing added 2 000 jobs (0.2%. ALSO READ: Is South Africa's unemployment rate really only 10%?
The Citizen
18-06-2025
- Business
- The Citizen
Inflation unchanged in May at 2.8% as economists expected
While the inflation rate remained under the bottom band of the Reserve Bank's inflation target, it is not expected to stay there. The inflation rate remained unchanged in May at 2.8% as economists expected, but geopolitical risks could see it drift higher than expected in the months ahead. Statistics South Africa (Statistics SA) announced on Wednesday morning that the inflation rate remained the same as in April, with food prices being the only category that pushed inflation up in May by 0.2% compared to April. Jee-A van der Linde, senior economist at Oxford Economics Africa, says the outcome was in line with their expectations, and they continue to see a mild increase in price inflation heading into the second half of 2025. The main contributors to the inflation rate in May were housing and utilities, which increased by 4.5% and contributed 1.0 percentage point, food and non-alcoholic beverages, which increased by 4.8% and contributed 0.9 percentage point and alcoholic beverages and tobacco, which increased by 4.3% and contributed 0.2 percentage point. Statistics SA noted that higher meat prices (+4.4%) were a key driver of prices, with the biggest monthly increase recorded for beef products. Van der Linde points out that South Africa is in the grip of a widespread outbreak of foot-and-mouth disease, which intensified in June and will have an impact on domestic food prices going forward. ALSO READ: Inflation steady in May but food prices still increased Fuel levy offset lower fuel prices in May, keeping inflation at 2.8% 'Elsewhere, the latest data shows that domestic fuel prices declined further in June, but this is likely to be offset by the simultaneous increase in general fuel levies this month. Mid-month fuel prices data from the Central Energy Fund (CEF) indicates that petrol and diesel are likely to cost more in July after the latest upsurge in international oil prices.' He also notes that international oil prices rallied after Israel's strikes on Iran, with Brent Crude Oil prices briefly hitting $80.0 per barrel before settling around $74 per barrel. 'Due to the flare-up in tensions in the Middle East, we now forecast Brent Crude Oil prices to average $67.8 per barrel in 2025, slightly higher than our previous estimate of $67.3 per barrel. 'While oil supply remains unaffected, further escalation could see Iran close the Strait of Hormuz, cutting off around 20% of global supply and potentially driving prices to $120 per barrel. At that point, oil prices would be near the levels recorded when Russia invaded Ukraine and domestic fuel prices shot up to record levels.' However, Van der Linde says the latest inflation data does not alter their updated inflation outlook, and they still forecast inflation will average 3.4% in 2025 compared to 4.4% in 2024. 'Although headline inflation will drift higher throughout the second half of the year due to base effects, the overall outlook remains benign and unchanged from our earlier views, although several risks have emerged recently that could lead to prices increasing faster.' ALSO READ: What Israel–Iran conflict means for South African economy Risks to inflation outlook worsened over past few days Busisiwe Nkonki and Johannes (Matimba) Khosa, economists at the Nedbank Group Economic Unit, also expect inflation to drift upwards in the second half of the year, but still average a muted 3.5% in 2025. However, they say, risks to the inflation outlook have worsened in recent days as the rand weakened, and global oil prices jumped due to the conflict in the Middle East. 'Food prices will increase as the base continues to normalise. However, favourable crop prices resulting from good rainfall, as well as increased livestock slaughtering, will contain the upside. The biggest concern is the rand. 'While the domestic currency has been resilient in recent weeks, it remains vulnerable to unfavourable global economic and geopolitical developments. 'The Monetary Policy Committee (MPC) of the South African Reserve Bank (Sarb) will have to weigh the benign inflation outlook against the potential upside risks emanating from the highly volatile and uncertain global environment. At this stage, we still see room for the Sarb to cut further in July.'
News24
18-06-2025
- Business
- News24
May inflation still below 3%, but meat and other food much pricier
• For more financial news, go to the News24 Business front page. For the third month in a row, consumer price index (CPI) inflation remained below 3% - the bottom level of the SA Reserve Bank's target band. CPI came in at 2.8% for May – unchanged from April and exactly in line with the expectations of economists polled by Reuters. But food prices are heating up. In May, food and non-alcoholic beverages were 4.8% more expensive than a year ago - the biggest annual increase in more than a year. Beef was a big contributor, as foot-and-mouth disease, combined with higher feed prices, fuelled price hikes, Statistics SA says. In a single month, from April to May, large price hikes were seen in beef steak (+4.5%), stewing beef (+2.5%) and beef mince (+1.7%). Annual inflation for meat surged from 3.0% in April to 4.4% in May. Fish prices are also on the rise, with hake now 9.1% and fish fingers 6.1% pricier than a year ago. Maize meal (+14%) and samp (21%) are also still much more expensive than a year ago. After prices for oils and other fats cooled in recent months, this picked up in May again. Sunflower oil was 7.6% pricier than a year ago and brick margarine 7.9%. Statistics SA noted that vegetable prices were volatile, but that May saw the biggest annual price increase (more than 10%) in 18 months. While coffee and tea prices are cooling, prices are still 12.4% higher than a year ago - from 15% in April. Statistics SA In May, electrician rates were updated, with services 7.9% more expensive than a year ago. Much cheaper fuel kept May's inflation number in check. Petrol prices were 16% and diesel almost 13% lower than a year before. Fuel has benefitted from falling oil prices, but this came to an abrupt halt on Friday after Israel's attacks on Iran. Traders are nervous that oil supplies from the Middle East may be disrupted by escalating tensions. On Wednesday morning, Brent oil was trading at around $75 a barrel – from an average of below $64 in May. SA diesel and fuel prices are currently on track for small hikes in the first week of July. The SA Reserve Bank has been pushing hard to lower SA's inflation target to 3% (from a band of 3% to 6%), and recently pointed out that the current inflation rate is lower than that of Japan (3.6%), making this an opportune time.
