BUSINESS NEWS - Unemployment levels remain a major barrier to financial freedom. This comes after many South Africans are still struggling with more than half of their household income reduced due to the pandemic.

According to the Quarterly TransUnion Consumer Pulse study conducted in November, 55% of South African consumers said the Covid-19 pandemic is still affecting their household income in a negative way. 

Although this number was the lowest in the year, down from 61% in August and 62% in March, unemployment still affects their financial freedom.

Job losses, reduced salaries and working hours were the main reasons household incomes decreased, with 34% of participants saying someone in their household lost their job, while 32% said someone in their household had their salary reduced and 28% had their work hours cut in the previous month.

With the country recording its highest unemployment rate of 34.9% in 2021, lower-income consumers in households earning less than R50,000 per year were hit the hardest and 38% indicated that someone in their household lost their job in October 2021.

Article: Caxton publication, The Citizen