Today is a public holiday in South Africa celebrating workers day which is kind of crazy knowing 1/3rd of your workforce being 32.1% is unemployed. The unofficial rate is much higher with figures closer to 50% being deemed more accurate. The official forecast sees the figures rising to 35% by 2025 and this is all down to an economic bloodbath bought on by a failing Government.
These figures are not for a happy reading and when it comes to job creation there is none taking place. How the system is supposed to work is those working pay their taxes which then flows into a system that creates jobs by upgrading or building new infrastructure with those funds so the money flows from one to another in a cyclic motion.
The problem lies in the fact these funds are constantly being stolen via corruption so that money flow does not happen. The infrastructure is not upgraded and why we see the roads in a state of disrepair. The sad part is we know there should be funds for so many projects and the general maintenance should supply work to tens of thousands who are unemployed.
The Government generously hands out a grant each month for those who are unemployed which totals R350 or around $18.50 which is so small it doesn't even cover a loaf of bread each day. Then you start to wonder why the crime rates are so high as it is all connected.
When the previous President Jacob Zuma was in charge he had the Gupta brothers assisting him in what has been called the State Capture corruption case and the country has never really recovered. Currently we have President Ramaphosa who could have fixed things and set things back on track but unfortunately he is no better and has allowed the status quo to just carry on.
Back in 2016 I can recall going to the mall looking for Christmas presents and thought to my self that this feels very different from previous years and actually felt like the country was in a recession. The people just did not have the money like they used to and this is mainly down to no money filtering back via the taxes into the economy.
People spending less money has the knock on effect with companies having to cut back and restructure letting staff go making the scenario even worse. Throw in the open border policy and those seeking jobs has increased two fold placing even more pressure on the local workforce.
Governments are in place to protect their people making sure they have the basics like being able to work so they can put food on their table every night. What is more and more obvious today is the thinking has changed because we see economic migrants flooding other countries as well. This we know will not end well and the result is going to be bloodshed whatever way you look at any scenario.
No one quite knows the figures of illegal undocumented foreigners in South Africa with figures ranging between 3 and 6 million. The problem with these numbers are that these people are all of working age and every job they take there is one less for the local population. Most of the masses are seeking unskilled labor due to poor education and many of these jobs have been taken by foreigners.
The harsh reality is that this will continue to deteriorate until the corruption stops and we can expect more economic bloodshed until that does.
