South Africa's jobless rate rises amid rolling blackouts

South Africa's unemployment rate remains a significant challenge, with the latest employment report showing a mixed picture of the job market. The CEO of REDi Holbourne Group, Rob Mailich, joined CNBC Africa to discuss the implications of the report and share insights from the recruitment business. Despite 258,000 job creations in the first quarter, the country also experienced 179,000 job losses, resulting in a slight decrease in the official unemployment rate to 32.9 per cent. However, the expanded definition of unemployment, which includes those who have given up work, rose. The comparison of the unemployment rate to that of Afghanistan highlights the severity of the situation. While the recruitment business focuses on the mid to upper segments of the market, Mailich noted that job seekers are increasingly hesitant to leave their current positions due to economic uncertainties and the need to support their households. Additionally, a growing number of individuals are considering emigration, further complicating the job market landscape. South Africans are being connected to opportunities abroad, particularly in markets like the UK, Europe, and the UAE, where skill shortages offer attractive prospects. The IT sector, in particular, is witnessing high demand for talent, leading to sponsorships for professionals willing to relocate. Despite job creation in various sectors, caution prevails among companies, with many choosing to maintain their current workforce rather than expand. The banking and financial services sector has varied approaches, with some firms retrenching and others slowly increasing hiring. In contrast, the mining and manufacturing sectors are experiencing downturns in recruitment activities. High-paying jobs in the executive level are seeing inflated salaries as firms compete to retain talent. Counter offers and promotions are common strategies used to retain employees, contributing to a rise in salary expectations. The influx of millennials in the workforce and changing work preferences also play a role in shaping salary trends. The job market dynamics, coupled with economic uncertainties and immigration considerations, are driving up salaries and reshaping the employment landscape in South Africa.