💎 Fed’s first rate cut since 2020 set to trigger market. Find undervalued gems with Fair ValueSee Undervalued Stocks

South Africa's unemployment rate rises amid power crisis

Published 05/16/2023, 06:50 AM
Updated 05/16/2023, 06:56 AM
© Reuters. Social grant recipients stand in a queue outside a post office, as joblessness takes its toll in Meadowlands, a suburb of Soweto, South Africa, February 24, 2022. REUTERS/Siphiwe Sibeko

By Kopano Gumbi

PRETORIA (Reuters) - South Africa's unemployment rate rose in the first quarter after declining for four consecutive quarters last year, data showed on Tuesday, as the country reeled from record power cuts.

Unemployment rose to 32.9% in the first three months of 2023 from 32.7% in the final quarter of last year, Statistics South Africa said.

State power utility Eskom has implemented the worst power outages on record due to its inability to produce enough megawatts to meet demand, leaving South Africans without electricity for up to 10 hours a day.

However, Statistician General Risenga Maluleke said further analysis needed to be done on whether consistent power cuts were impacting employment.

"When you look at areas like mining and manufacturing, they have lost employment, but it needs a further analysis," he told a media briefing.

The power crisis is having a debilitating impact on households and businesses alike, and is expected to put pressure on the employment status of many as some firms struggle to remain in operation.

Africa's most industrialised economy has one of the highest unemployment rates in the world.

The agency said the number of unemployed people totalled 7.933 million in the January-March period, from 7.753 million people in the last three months of 2022.

© Reuters. Social grant recipients stand in a queue outside a post office, as joblessness takes its toll in Meadowlands, a suburb of Soweto, South Africa, February 24, 2022. REUTERS/Siphiwe Sibeko

A major concern is the level of youth unemployment at 46.5%, as those in the 15-34 age range account for over half the country's employable population of 40.6 million aged between 15 and 64.

According to the expanded definition of unemployment which includes those discouraged from seeking work, 42.4% were without work compared to 42.6% in the fourth quarter of 2022.

Latest comments

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.