According to the National Income Dynamics Study (NIDS) of South Africa, poverty in South Africa can be defined as living on less than R122 per day per person in 2011 prices (an increase from R99 per day per person in 2010 prices). As expected, poverty has increased over time: from 53.2 per cent in 2006 to 55.5 per cent in 2011. The number of people living below the upper-bound poverty line increased from 30.4 million to 32.4 million over the same time.
The poverty rate in South Africa
The poverty rate in South Africa increased from 53.2 per cent in 2006 to 55.5 per cent in 2011, with the number of people living below the upper-bound poverty line increasing from 30.4 million to 32.4 million, according to Statistics South Africa (SSA).
The measures used by SSA for calculating poverty statistics are based on income and consumption expenditure data collected through three surveys: The Income and Expenditure Survey (IES), Living Conditions Survey (LCS) and General Household Survey (GHS).
A person is considered poor if they cannot meet their basic needs within a period of time, usually one year or less. The upper boundary of this boundary varies over time as economic conditions change – currently it is R992 per person per month for rural areas and R1 065 per person per month for urban areas; this is known as the lower-bound poverty line (LBPL).
The South African economy
The South African economy has shown remarkable resilience in recent years, but high unemployment and inequality remain stubbornly entrenched. Unemployment is highest among young people–70 per cent of 15-24-year-olds are jobless.
There are many factors that contribute to high unemployment, including skills mismatch and a lack of relevant work experience, but it’s also an issue that crosses all sectors of the economy. The government is working on several initiatives aimed at creating more jobs for South Africans while cutting down on the number of people who rely on social grants as their main source of income.
