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And now for the bad news.

South Africa has recorded another depressing month as business closures for July 2024 are now at 133.

Although liquidations declined by 5,3% in the first 7 months of 2024 – compared with the first 7 months of 2023 – the total businesses that have shut doors in 2024 now stands at 890.

The bulk of the July liquidations were in the financing, insurance, real estate and business services sectors, reflecting the common trend this year, although the trade, catering, and accommodation sectors have also seen some dark days, as per BusinessTech.

Although it may seem like doom and gloom for SA businesses, Stats SA reckon this year is showing a slight improvement with year-on-year liquidations for July down 5% compared to 2023. Taking into account that the number of closures has been steadily improving from 2022 (1,907 in 2022 and 1,657 in 2023), this year is set to have the lowest number of liquidations in over five years.

Business #liquidations decreased by 5,0% y/y in July 2024 (from 140 to 133 cases). Liquidations declined by 5,3% in the first 7 months of 2024 compared with the first 7 months of 2023.

Listen here for more: https://t.co/n3SVsg8h7f
#StatsSA pic.twitter.com/O8dlvghjAr

— Stats SA (@StatsSA) August 28, 2024

Although a silver lining, it needs to be noted that business closures inevitably lead to job losses, and it’s here that the numbers look a bit more concerning.

The first quarter of 2024 saw 67,000 jobs lost, and in the second quarter, Stats SA reported a 92,000 decrease in the number of employed people – down to 16.7 million. Total employment fell from 10,731,000 in December 2023 to 10,664,000 in March 2024.

South Africa’s jobs data shows that 111,000 jobs were lost in the trade sector and 9,000 jobs were lost in the finance sector. Manufacturing, Community and social services, and Utilities have however faired better, recording increased employment of 49,000, 36,000, and 9,000 respectively.

The second quarter of 2024 had an unemployment rate of 33.5%, the highest in two years, which surprised analysts who expected it to ease to 32.3%. According to Trade Economics, the number of unemployed individuals marks the highest figure since comparable records began in 2008.

Ja, things are looking a bit bleak out there at the moment, so even if you hate your job, be grateful you have one. And spare a thought for all the business owners who had to let go of their dreams this year.

[source:businesstech&tradingeconomics]