South Africa Unemployment Hits Four-Year High of 33.6%

South Africa's unemployment rate climbed to 33.6% in the quarter ending in June, marking a four-year high. Data from Statistics South Africa shows the rate increased from 32.7% in the previous quarter, with the total number of unemployed individuals rising by 345,000 to 8.5 million. Youth unemployment for those aged 15 to 34 reached 47.4%.

Job losses were most concentrated in community and social services, mining, agriculture, and manufacturing, though the trade and construction sectors saw growth. The downturn follows the start of a conflict in the Middle East on February 28, which increased energy prices and strained household budgets. Local businesses faced further pressure from supply constraints and rising oil prices linked to the US-Iran war.

Enoch Godongwana, the Finance Minister, stated that the country cannot defeat youth unemployment without faster, inclusive economic growth. He noted that such growth requires reform, implementation, and capable institutions. Meanwhile, the South African Reserve Bank raised interest rates in May to combat inflation and recently maintained the benchmark rate at 7%, though officials indicated they may tighten monetary policy again to contain price pressures.