South Africa’s unemployment surges

South Africa’s unemployment rate rose more than expected in the first quarter as the construction and trade sectors shed jobs.  

The nation’s jobless rate increased to 32.9% in the three months through March, compared with 31.9% in the prior quarter, according to data released by Statistics South Africa in the capital, Pretoria, on Tuesday. The median estimate of four economists in a Bloomberg survey was 32.6%

With 8.2 million people unemployed, South Africa has one of the highest jobless rates globally, undermining government efforts to boost revenue, curb debt, and deliver on promises of faster growth and job creation.

The economy expanded 0.6% last year and manufacturing data for the first quarter indicates that sector contracted in the period.

South Africa’s Finance Minister Enoch Godongwana will present his latest plan to boost growth in his third iteration of the 2025 budget next Wednesday, after two previous versions were rejected by members of the coalition government because of proposals to increase value-added tax.

He’s expected to reprioritise spending in order to fund a R75 billion revenue shortfall.