How confident are our professionals

PPS, a South African insurer focused on the graduate and post graduate market recently released their confidence survey conducted with about 3000 of their members. This survey is aimed at showing the levels of confidence that graduate professionals, ie. Doctors, Lawyers, Accountants and Engineers have in South Africa and its economy.

84% remain confident about staying/living in South Africa. According to this report the successful hosting of the world cup, the sovereign debt crisis in Europe and the massive skills shortage in SA are the massive contributors.

In contrast 56% of graduate professionals are confident about SA's economic outlook over the next 12months, down from 64%. Also down from 64% to 56% is the confidence in the local equities market. With only 59% believing that the Rand will strengthen over the next 12 months against other major currencies.

There is also a clear indication that professionals do not believe the worst of South Africa's economic times are over with only 45% of respondents believing the worst has hit us and 71% believing a double dip is on the way.

Government's ability to address unemployment is also a major concern with only 29% of professionals believing that it has the capacity to bring change in this important facet of our economy.

The massive hurdles in the SA economy are Crime, Health care and Education, and here professionals are clearly not very confident.On health services sentiment under graduates was low with only 46% believing that health service provision will be better under the NHS system. Only 45% believe crime rates will drop over the next five years and 48% expected better education levels over the next 5 years. The very interesting statistic that came across as that 89% of the top earners in SA are worried about the sharp escalation in costs of education.

In conclusion. One can extract that there is optimism about South Africa, its people and the private sector's ability to grow under tough circumstances, however the ability of government to address critical issues in our economy does not bolster much confidence.