South Africa's official jobless rate leapt to 23.5 percent in the first quarter of 2009 and continued pressure on labour intensive sectors such as the car industry point to more job losses this year. Statistics South Africa said on Tuesday unemployment increased from 21.9 percent in the final three months of last year as a global downturn and weak domestic demand hit Africa's biggest economy.
Unemployment has eased over the past four years but the renewed rise underlines the challenge facing the new African National Congress government of Jacob Zuma, who has promised to create millions of jobs. South Africa's manufacturing and mining sectors have been hit by recession in major trading partners, driving unemployment higher after a surprising fall in the fourth quarter of 2008.
Vehicle manufacturing, one of the biggest sectors employing unskilled and semi-skilled workers, continues to contract. New car sales plunged 44 percent year-on-year in April, the biggest fall on record, and manufacturers expected no relief until, at best, the second half of the year, the National Association of Automobile Manufacturers (NAAMSA) said. Exports, which supported the industry in 2008, fell 49.1 percent. The car industry employs more than 120,000 people and has shed thousands of jobs in recent months.
Comments
Comments are closed.