Unemployment set to increase following downgrade
Updated | By Nathan Daniels
A leading economist has warned that unemployment is likely to increase following Standard & Poor's decision to downgrade South Africa's long-term local currency to sub-investment grade .

North West University's (NWU) School of Business and Governance's Professor Raymond Parsons says South Africa's youth will continue to bear the brunt of the struggling economy.
This follows a decision by Standard & Poor's to drop South Africa long-term foreign currency sovereign rating to "BB" from "BB+".
Parsons says the uncertain political climate is a massive contributing factor.
ALSO READ: South Africa staves off further downgrade
"The leadership who emerges from the ANC elective conference is very decisive for the level of confidence the markets, business and stakeholders will have in the economy. We need structural reforms in the economy. We only then have a good opportunity to turn the economy around and get out of the no-growth trap we're in."
Meanwhile, Fitch has affirmed South Africa's long-term foreign and local currency debt ratings at 'BB+' and maintained a stable outlook.
"We only expected to grow 1.2% next year. This is at least positive but not enough to soak up the unemployment we're facing. We are telling our matriculates this year that probably half of them will not get jobs next year. This is the situation we face," says Parsons.
Show's Stories
-
A quick solution to stop the mozzies from biting you
This is a new one – who knew something that smells so sweet could help k...
The Workzone with Alex Jay 6 hours ago -
Kid gets head stuck in railing, but dad comes to the rescue
Daddy to the rescue...
The Workzone with Elana Afrika-Bredenkamp 6 hours ago