South Africa Jobless Rate Hits Four-Year High in Growth Warning

Skip to Content News Archives Economy Energy Oil & Gas Renewables Electric Vehicles Mining Commodities Agriculture Real Estate Mortgages Mortgage Rates Finance Banking Insurance Fintech Cryptocurrency Work Wealth Smart Money Wealth Management Investor Personal Finance Family Finance Retirement Taxes High Net Worth FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials More Innovation Information Technology FP500 Podcasts Small Business Lives Told Tails Told Shopping Financial Post Store Obituaries Place a Notice Advertising Advertising With Us Advertising Solutions Postmedia Ad Manager Sponsorship Requests Classifieds Place a Classifieds ad Working Profile Settings My Subscriptions Saved Articles My Offers Newsletters Customer Service FAQ News Economy Energy Mining Real Estate Finance Work Wealth Investor FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials This advertisement has not loaded yet, but your article continues below.HomePMN BusinessSouth Africa Jobless Rate Hits Four-Year High in Growth WarningSouth Africa’s unemployment rate hit a four-year high in the second quarter, delivering a reminder of the nation’s need for faster economic growth amid geopolitical tension abroad and public anger back home.Author of the article: You can save this article by registering for free here. 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Photographer: Leon Sadiki/Bloomberg Photo by Leon Sadiki /Bloomberg(Bloomberg) — South Africa’s unemployment rate hit a four-year high in the second quarter, delivering a reminder of the nation’s need for faster economic growth amid geopolitical tension abroad and public anger back home.THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountThe rate rose to 33.6% in the three months through June from 32.7% in the prior quarter, according to data released by Statistics South Africa in Pretoria on Tuesday. The median estimate of four economists in a Bloomberg survey was 32.6%.“South Africa has made meaningful progress in implementing key reforms, fostering a more supportive environment for investment and economic growth,” Investec economist Lara Hodes wrote in a note to clients. “Further reform efforts are needed to see a significant, sustainable lift in growth and accordingly job creation.”Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againSimmering discontent over one of the highest recorded levels of unemployment in the world has contributed to a recent spate of anti-immigrant marches around South Africa, fanning concern that it may witness a repeat of deadly xenophobic violence that’s erupted in the past.The data captures the first full quarter read on employment since the Middle East conflict began on Feb. 28. The war drove energy prices higher, hitting household budgets, while the South African Reserve Bank raised interest rates in May to control inflation in a further headwind for investment and spending. The SARB forecasts growth this year of 1.4%, which is an upgrade from 2025 but still well below the pace of activity required to meaningfully reduce unemployment.“Persistent geopolitical tensions have led to elevated uncertainty globally, weighing on business confidence and accordingly expansion and hiring decisions,” Hodes said.Statistician-General Risenga Maluleke told reporters that fallout from the Iran war was among the factors affecting the employment picture, but it was not the only one.The number of unemployed people rose to 8.5 million from 8.1 million. Most of the job losses were in the community and social services sector which gave up 57,000 positions, as well as mining which lost 26,000 jobs. The trade and construction industries added 70,000 and 39,000 workers respectively.Manufacturing shed 15,000 positions during the quarter. Data released later on Tuesday showed that manufacturing production fell 1.7% year-on-year in June, although that wasn’t as severe a drop as the 3.7% decline forecast by five economists surveyed by Bloomberg. Agriculture also lost ground slightly with its workforce also shrinking by 15,000, although Agricultural Business Chamber Chief Economist Wandile Sihlobo noted that the sector’s second quarter employment levels of 944,000 were 4% higher than in the same period last year.This advertisement has not loaded yet.This advertisement has not loaded yet, but your article continues below.The data “shows that we are generally in a year of agricultural abundance in fruits, vegetables, and various field crops, all of which are labour-intensive,” he said in a research note, while adding that cattle farmers continue to struggle with foot-and-mouth disease.The reading presents a setback for South Africa’s fragile economy, which could face further restraint if the SARB opts to tighten monetary policy again to keep price pressures contained. Governor Lesetja Kganyago and his colleagues left the benchmark rate unchanged at 7% last month after hiking at their previous meeting, but warned they would act if needed.Sign up here for the daily Next Africa newsletter and subscribe to the Next Africa podcast on Apple, Spotify or anywhere you listen.Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.