Get 40% Off
🚨 Volatile Markets? Find Hidden Gems for Serious Outperformance
Find Stocks Now

South Africa's unemployment rate drops marginally in second quarter

Published 08/15/2023, 05:33 AM
Updated 08/15/2023, 07:03 AM
© Reuters. FILE PHOTO: Casual workers display posters advertising their skills at an intersection in Kempton Park, near Johannesburg, South Africa, October 1, 2020. REUTERS/Siphiwe Sibeko/File Photo

By Kopano Gumbi

PRETORIA (Reuters) -South Africa's official unemployment rate dropped marginally in the second quarter to 32.6%, its lowest level since the first quarter of 2021, data showed on Tuesday.

Statistics South Africa said the number of people with jobs rose to 16.3 million in April-June, approaching the pre-COVID level of 16.4 million and the seventh consecutive quarterly rise in employment.

Africa's most industrialised economy has one of the highest unemployment rates in the world, with the pandemic exacerbating longstanding structural problems linked to the legacy of apartheid and colonialism.

A major constraint in the last decade has been rolling power blackouts that have slashed the country's growth potential and hurt businesses of all sizes.

The economy did manage to eke out growth of 0.2% in annual terms in the first quarter of 2023, but the central bank thinks growth would be closer to 2% in the absence of power cuts.

Stats SA data showed the number of unemployed people was 7.921 million in the second quarter, compared with 7.933 million in the first quarter.

According to an expanded definition of unemployment that includes those discouraged from seeking work, 42.1% of the labour force was jobless in April-June, compared with 42.4% in January-March.

Analysts had predicted the official unemployment rate would be 32.9% in the second quarter, the same as in the first.

In a reflection of how the past decade's anaemic growth has affected joblessness, nearly 3 million more people have become unemployed since the second quarter of 2013.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

The proportion of those in long-term unemployment has increased from roughly 67% to 77% over the past 10 years.

Latest comments

Nobody cares, next.
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.