world-economy

South Africa's Labor Market Deteriorates as Energy Costs Spike

South Africa's unemployment rate climbed more steeply than anticipated in the first quarter. Construction and community services shed jobs as the economy faced headwinds from rising energy costs. Gasoline prices approached four-year highs while diesel exceeded 30 rand per liter for the first time, pressuring both businesses and consumers. The currency weakened alongside global oil markets, limiting government efforts to shield fuel costs. Central bank officials signaled heightened caution on monetary policy, citing mounting inflation risks tied to energy shocks and broader economic uncertainty. The labor market weakness emerged before the full economic impact of Middle East tensions materialized across supply chains. Officials warned they would carefully assess incoming data before making rate decisions, acknowledging dual pressures on employment and price stability in coming quarters.