Stats SA rebuts claims of understated unemployment

The head of South Africa’s statistics agency defended the methodology of his organisation’s unemployment data after the chief of the nation’s top bank by customers said misclassification of traders means the jobless rate was much lower.

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Capitec Bank Holdings Chief Executive Officer Gerrie Fourie recently said that the unemployment rate — which was 32.9% for the first quarter and is among the highest globally tracked by Bloomberg — would be closer to 10% if self-employed people and those working in informal markets are counted, according to Business Day newspaper.

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In a letter to the newspaper, Statistician General Risenga Maluleke said it was “incorrect and misleading to suggest” that Statistics South Africa misses those employed in the informal sector.

The organisation measures casual workers using International Labour Organisation guidelines on registration status and sizes of businesses, and that to qualify, employees must be unregistered for income tax and work in places that employ fewer than five people.

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It also produces reports that measure this sector, including the quarterly labour-force survey, and the survey of employers and self-employed.

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“The informal sector is measured, tracked and reported on consistently, and if anything the insights these reports provide should guide and enrich policy, not distort it,” Maluleke said. “We urge industry leaders to engage more deeply with official statistics before questioning their validity. While constructive debate is encouraged, it should be based on solid evidence.”

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