Key insights
- South Africa's unemployment rate rose to 32.7% in Q1, exceeding expectations and leading the IMF to reduce its 2026 growth forecast. Job losses in construction and community services offset gains in manufacturing and mining. Rising energy prices due to geopolitical tensions add further economic pressure. This news has a slightly negative impact on US equities due to broader global economic concerns.
Investing.com -- South Africa’s unemployment rate increased to 32.7% in the first quarter, exceeding economist expectations as job losses in construction and community services sectors weakened the labor market.
The rate climbed from 31.4% in the previous quarter, according to data released by Statistics South Africa in Pretoria on Tuesday. Three economists surveyed by Bloomberg had predicted a median rate of 31.7%.
The number of unemployed people reached 8.1 million, presenting challenges for South Africa’s economy. Last month, the International Monetary Fund reduced its 2026 economic growth forecast for the country to 1% from 1.4%.
Energy, food and fertilizer prices have increased since the US and Israel attacked Iran on Feb. 28. The conflict poses challenges for oil-importing countries like South Africa.
Construction and community and social services recorded the largest job losses during the quarter, while manufacturing and mining sectors added workers.
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