South Africa's unemployment rate rose in the fourth quarter due to job cuts in social services and agriculture.
The official unemployment rate for the three months to December rose to 32.1% from 31.9% in the previous quarter, according to a report released by Statistics South Africa in the capital Pretoria on Tuesday. The median forecast of eight economists surveyed by Bloomberg was 31.6%.
The negative data could further erode voter support for the ruling African National Congress party ahead of elections later this year, as fewer taxpayers and more people rely on welfare subsidies. This could put further pressure on public finances. Nine million people already receive the R350 (S18) monthly salary for the unemployed, and President Cyril Ramaphosa has promised to extend and improve it.
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Finance Minister Enoch Godongwana is expected to provide further details on the country's finances when he presents the budget on Wednesday.
Finance Minister Enoch Godongwana will deliver his Budget Speech on Wednesday 21st February at 2pm, live on Moneyweb.
Statistics South Africa said the expanded unemployment rate, which includes people who are available to work but not looking for work, was 41.1%, compared with 41.2% in the September quarter.
Read: How has the unemployment rate changed since 2000?
Unemployment is likely to continue rising as falling commodity prices and logistics constraints at freight rail systems and Transnet-operated ports hurt mining companies' profits. Anglo American Platinum on Monday proposed restructuring that could affect 3,700 jobs across its South African operations, while Cerity Resource Holdings is considering making 600 workers redundant.
Read: Amplats considers cutting 3,700 jobs as metal prices fall
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