South Africa’s unemployment rate, which hit a whopping 34.4% in the second quarter of this year, the highest level since records began in 2008, should dip slightly in the second half of the year, according to FocusEconomics.
Citing the civil unrest in Q3, which resulted in damage amounting to US$3.4 billion, along with the high number of Covid cases and below-par vaccination levels, the analysts believe that unemployment will remain ‘excruciatingly’ high, with risks tilted towards the upside.
“Some ongoing measures to contain the virus, and a likely Q4 rate hike from the Central Bank, are all sure to keep slack in the labour market,” the analysts point out.