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S. African Unemployment Rises; Job Gains In construction, trade, mining

S. African Unemployment Rises; Job Gains In construction, trade, mining

Fueled by job losses in agriculture and manufacturing, unemployment in Africa’s largest economy rose to 25.6 percent in the second quarter, undermining consumer spending, according to a Bloomberg report.

Employment gains, however, were recorded in construction, trade, mining and transportation.

The jobless rate increased by 122,000 people to 4.7 million, up from from 25.2 percent in the first quarter, according to Statistics South Africa.

Manufacturing, which makes up about 15 percent of the economy, lost 18,000 jobs in the second quarter. Employment in agriculture dropped by 26,000 jobs, the statistics office said. The community and social services industry, which includes public sector jobs, lost 22,000 jobs.

Construction reported the biggest quarterly increase in jobs, gaining 62,000. Employment in the trade industry climbed by 52,000, the statistics office said. Mining added 9,000 jobs and transport rose by 19,000.

The Reserve Bank reduced its economic growth forecast for 2013 from 2.4 percent to 2 percent – less than half the rate of expansion the government says it needs to create 5 million jobs by 2020.