SOUTH AFRICA: The high unemployment rate is worsening over-indebtedness among consumers, the Credit Ombud said today.
Many people simply can’t find work and this is affecting households’ ability to pay back their debts, said Credit Ombud Manie van Schalkwyk.
Van Schalkwyk was commenting following the release earlier in the week of the latest Quarterly Labour Force Survey (QLFS), which showed that the country’s workforce decreased by 235,000 people between the third and fourth quarters of 2012.
The QLFS is a household-based sample survey conducted by Statistics SA and covers the labour market activities of people aged 15 to 64.
Van Schalkwyk said the National Credit Regulator had reported that of the 19.69m credit-active consumers, more than 9.25m (47 percent) had impaired records.