South Africa in a grip of stagflation
UASA is concerned about the slow pace of economic growth as reported by Statistics South Africa today, fearing that more jobs may be lost as a result.
After growing at its slowest pace in almost two years in the second quarter of 2011, it seems the country has entered a situation termed as stagflation, meaning that the population is becoming poorer via a reduction in the number of jobs and higher prices. It is the one type of economic environment any country would like to avoid at all costs, representing rapidly slowing economic growth, increasing unemployment and rising inflation.
UASA is concerned about the effect on the countries millions of unemployed, as well as on Government’s efforts to create jobs. It seems quite certain that under these economic joblessness will increase as the economy needs to grow at 7% a year to create jobs for South Africa’s unemployed.