Economy
South Africa’s Unemployment Rate Hits 32.6 Percent in Q1 2021
Unemployment rate in Africa’s second-largest economy, South Africa, rose to a 13-month high of 32.6 percent in the first quarter (Q1) of 2021, according to the latest data from Statistics South Africa.
The jobless rate rose from 32.5 percent recorded in the three months ended December 2020, making it the highest unemployment rate on record.
South Africa’s economy contracted by 7 percent in 2020, forcing several businesses to cut wages, reduce staff or shut down completely.
“Unemployment is unlikely to return to pre-crisis levels given we don’t see real per capita output returning to pre-crisis levels,” said Peter Attard Montalto, head of capital markets research at Intellidex. “The economy would need to see trend growth well above 2.5% rather than the 1.7% we see to absorb the lost jobs.”
In the quarter under review, the construction sector lost 87,000 jobs, while the trade industry and transport lost 84,000 and 40,000 jobs, respectively.
However, the finance industry added 215,000 jobs in the first quarter of 2021.