South Africa sees 759 business closures in six months

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According to the latest data from Stats SA, 121 companies were liquidated in June 2024. Of these, 104 closures were voluntary—12 fewer than in June 2023—while 17 were compulsory, representing a 5-case increase from the previous year.

, despite these fluctuations, the number of liquidations in Q2 2024 decreased by 4.3%, from 391 in Q2 2023 to 374 this year.Over the first half of 2024, liquidations dropped by 5.4%, from 802 in the same period of 2023 to 759.

Despite a decrease in liquidations compared to last year, the high number of business closures continues to hinder the creation of much-needed jobs in South Africa. Investec Economist Lara Hodes emphasised that a significant boost in business confidence and economic growth is essential to addressing South Africa’s severe unemployment crisis.

According to the QES, total employment declined by 67 000, or 0.6%, quarter-on-quarter, falling from 10 731 000 in December 2023 to 10 664 000 in March 2024.Trade: -57 000 jobs, or -2.4%Mining: -3 000 jobs, or -0.6%Transport: +2 000 jobs, or +0.4%Full-time and part-time employment fell by 16 000 and 38 000 quarter-on-quarter, respectively.

 

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