Investing.com — South Africa's unemployment rate rose to 32.7% in the first quarter, exceeding economists' expectations as job losses in the construction and community services sectors weakened the labor market.
The rate increased 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 an average rate of 31.7%.
The number of unemployed people reached 8.1 million, posing challenges to South Africa's economy. Last month, the International Monetary Fund cut its 2026 economic growth forecast for the country to 1% from 1.4%.
Energy, food and fertilizer prices have surged since the US and Israel attacked Iran on February 28. This conflict creates challenges for oil importing countries like South Africa.
The largest job losses were recorded in construction and community and social services during the quarter, while the number of workers in the manufacturing and mining sectors increased.
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