Economics
South Africa Pay Growth Slows Amid Longest Downward Cycle Since 1945
- Growth in unit labour costs slowed to 3.9% in fourth quarter
- Household debt jumped to 77.1% of disposable income in 2020
Construction workers in Johannesburg.
Photographer: Waldo Swiegers/BloombergThis article is for subscribers only.
Growth in South African labor costs continued to slow in the fourth quarter of 2020 from a 27-year high as the economy extended its longest downward cycle since World War II.
Growth in economy-wide nominal unit labor costs fell to 3.9% from 4.6% in the third quarter, according to the South African Reserve Bank’s Quarterly Bulletin released Tuesday. That was down from the 12.6% high reached in the three months through June, which was likely driven by a data distortion caused by the coronavirus pandemic, the central bank said.