South Africa’s unemployment rate has increased from 31.9% at the end of last year’s fourth quarter (Q4) to 32.1%, the latest Quarterly Labour Force Survey by Statistics South Africa has found.
Although more information is still coming in about the latest findings of the survey, it can be revealed that the most job losses were experienced in the following sectors: community and social services, construction and agriculture.
News of the deteriorating situation on the jobs front comes after Kumba Iron Ore reported this morning that as many as 490 jobs could be lost at its open-pit mine in Sishen, while Anglo American Platinum (Amplats) could retrench 3,700 workers.
The feared employment fallout follows on the back of persistent failure by Transnet Freight Rail (TFR) to get commodities to the country’s ports in time.
Last year’s Q4 volume moved to the Port of Saldanha decreased by 19% because TFR’s bulk rail capacity was not working as it should.
As a result, South Africa’s largest producer of iron ore has had to decrease production, adjusted down by 5.3% to 35.7 million tonnes.
In addition, Kumba has said it may have to review contracts with at least 160 contractors, a process that could potentially lead to further job losses in the mining sector.
The move to trim its labour force is an attempt to save as much as R3 billion in 2024.
In the meantime, Amplats has also indicated that decreased production will force Rustenburg’s biggest employer to embark on a “restructuring process”.
Freight News
