Jobs vs Junk — would be your job secure?

But these terms dominate ‚ headlines when finance ministers are fired by presidents and it all leads to exactly the identical thing — taxpayers worry about their houses income and jobs.

Last week‚ South Africa’s sovereign credit rating was downgraded to “junk status” by two evaluations agencies‚ Standard and Poor’s as well as Fitch.

SA has been put by the Moody’s ‚ . So what exactly does this mean to your employment?

Based on economist Dawie Roodt‚ much.

“The main reason why is that the ratings agencies only confirmed the conditions. The downgrades don’t change you will need to find and things ‚ they’re just saying things are so bad.

Roodt said that the downgrades confirmed the awful news that local and global investors definitely thought about.

“Nevertheless‚ having said that‚ of course what we’ve seen is that the rand take a bit of a knock and the bond market is a tiny bit weaker. So there will be a slight impact. It is likely to lead to less investments‚ it is likely so to lead to weaker economic growth and so forth‚ but not radically so.”

“It is not as if we’re suddenly going to go into a recession.”

Roodt said other problems‚ like rigid labour legislation‚ a lack of skills and technological improvements‚ were likely to impact the labour market.

“The evaluation itself is unlikely to get much of an impact.”

His remarks come on the rear of the release of employment amounts on Friday by Stats South Africa to its final quarter of 2016.

The statistics say employment increased to 9.69 million at the end of December‚ 18‚000 jobs over the figure captured at the end of the next quarter in September.

This‚ Stats SA stated‚ was mainly because of gains of 3.3 percent (68‚000 occupations) at the commerce sector‚ 1.6 percent (33‚000) at company services and 1.1 percent (13 000) in manufacturing.

There were‚ however‚ declines in neighborhood services of 3% (81‚000)‚ 1.8 percent (11‚000) at building when mining dropped 0.7 percent (3‚000) and transport 0.2 percent (1‚000).

When compared to the identical period last year‚ employment is up by 0.9 percent or 90‚000 jobs year-on-year between December 2015 and 2016.

As far as investment is concerned‚ foreign direct investment (FDI)‚ that former finance minister Pravin Gordhan was at the UK to lobby for one of other matters‚ is defined in SA as if a foreigner buys over 10 percent of a company.

“South Africa is extremely much dependent on foreign capital‚ and I think that is more significant than saying we’re reliant upon FDI‚” Roodt stated.

He clarified that when a foreigner purchases‚ such asgovernment bonds that were ‚‚ the money doesn’t necessarily go into the country ‚ resulting in lower rates of interest and making it a lot easier for other people that were local to invest. “So instead of saying we’re reliant of FDI‚ I would say we’re more reliant on foreign capital inflow‚ which may visit either FDI or something else and finally in a roundabout way wind up in investment‚” he explained.

“The biggest inflow of money into the country is in two asset classes‚ one is your bond market which is government debt instruments‚ and the other is that the equity market‚ that the Johannesburg Stock Exchange‚ that is where the bulk of the money goes. That’s also where the money flows out and that is when something goes wrong ‚” he 24, why the currency takes a knock.

Source

http://www.timeslive.co.za/sundaytimes/businesstimes/2017/04/10/Jobs-vs-Junk-%E2%80%93-is-your-job-safe

source http://www.sandiegojobsondemand.com/jobs-vs-junk-would-be-your-job-secure/