Is South Africa’s real unemployment rate 10%? Capitec Bank CEO Gerrie Fourie sparks debate

CapeTalk's Lester Kiewit is joined by Marc Lubner, Group Chief Executive Officer at Afrika Tikkun.

Listen below:

Might South Africa’s unemployment rate be closer to 10% than 32.9%?

That's the suggestion of Capitec CEO Gerrie Fourie, who says that statistics fail to take into account all those who work in the informal economy or have very small businesses.

StatsSA doesn't include, for example, those in the township informal market, some of whom have a turnover of R1,000 a day, suggests Fourie.

Lubner says he thinks both stats are correct.

ALSO READ: Unemployment rate climbs - almost 10% more young people without jobs than 10 years ago

"Many of these are gogos who've just got a shack with extra space that they convert into places of safety."

- Marc Lubner, Group Chief Executive Officer - Afrika Tikkun

"I think someone like Gerrie is in a good space to see how an informal operator, like Gogo, is certainly not going to be picked up by StatsSA."

- Marc Lubner, Group Chief Executive Officer - Afrika Tikkun

Lubner says the danger from moving away from the StatsSA figure is that it detracts from the urgent need to create formal jobs.

The corporate sector has to do a lot more, he says.

"The corporate sector has to take on a greater sense of responsibility for creating formal jobs where people know they have a contract for at least a minimum of a year."

- Marc Lubner, Group Chief Executive Officer - Afrika Tikkun

Lubner says it is also unhelpful and inaccurate to view those who make up the 42% youth unemployment contingent as idle, listless and workshy.

"Young people want jobs...they are aware there is a world beyond the limits of poverty... they want opportunities."

- Marc Lubner, Group Chief Executive Officer - Afrika Tikkun

ALSO READ: 'South Africa has graduates that cannot get jobs. Some have skills the economy doesn’t need'

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