BloombergAfrican companies have already announced thousands of job cuts. In a country where a third of the labor force is already unemployed, this would put even more strain on demand and economic growth. “Labor market dynamics — job growth, income growth — are the most important drivers of consumption expenditure,” Absa Bank Ltd senior economist Miyelani Maluleke said. “I worry that if we see more of these kinds of announcements it could further depress household consumption expenditure,” Maluleke added. South Africa’s unemployment rate has remained above 20 percent for at least two decades, largely due to insufficient economic growth.

Source: Taipei Times January 22, 2020 15:56 UTC