Business confidence in South Africa began to recover in June and July after a sharp decline as the country led up to the May elections.
Research from the South African Chamber of Commerce and Industry (SACCI) showed on Wednesday that its business confidence index rose to 109.1 in July, up from 109.0 in June and 107.8 in May.
Government of National Unity
The body also acknowledged the positive impact the Government of National Unity has had on SA’s Business Confidence Index.
The body noted that there were expectations of improvement in business sentiment after it became clear that a coalition government would be formed.
“The broader representation and accountability in government have created an opportunity for efficient economic expansion, more employment opportunities, and increased inclusiveness,” SACCI said.
Not so great news for employment
While business confidence is up, employment figures in SA are also up.
The Quarterly Labour Force Survey (QLFS) for the second quarter (Q2) of 2024 said yesterday that South Africa’s official unemployment rate has increased from 32.9% in the first quarter (Q1) of 2024 to 33.5% in Q2.
While looking at the period from January to March of 2024, Statistics South Africa (StatsSA) noted that there were 8.2 million unemployed South Africans. This number has risen to 8.3 million in the period from April to June 2024.
The data showed that unemployment in SA is at its highest rate since 2022.
The survey found that the working-age population increased by 137,000 or 0.3% in Q2 of 2024 compared with Q1.
The number of employed persons decreased by 92,000 to 16.7 million in Q2. In contrast, the number of unemployed persons increased by 158,000 to 8.4 million compared with Q1, resulting in an increase of 66,000 (up by 0.3%) in the labour force.
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