{"id":502325,"date":"2021-07-04T15:00:53","date_gmt":"2021-07-04T13:00:53","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=502325"},"modified":"2021-07-02T12:04:10","modified_gmt":"2021-07-02T10:04:10","slug":"the-businesses-hardest-hit-by-liquidations-in-south-africa-right-now","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/business\/502325\/the-businesses-hardest-hit-by-liquidations-in-south-africa-right-now\/","title":{"rendered":"The businesses hardest hit by liquidations in South Africa right now"},"content":{"rendered":"

Statistics South Africa has published its latest report on liquidations and insolvencies, pointing to a significant increase in liquidations since the start of the year.<\/p>\n

Liquidation refers to the winding-up of the affairs of a company or close corporation when liabilities exceed assets and it can be resolved by voluntary action or by an order of the court.<\/p>\n

The data shows that the total number of liquidations recorded decreased by 2.1% in May 2021 compared with May 2020, with a total of 191 liquidations reported over the course of the month.<\/p>\n

However, the total number of liquidations increased by 37.5%<\/strong> in the first five months of 2021 compared with the first five months of 2020.<\/p>\n

When comparing quarterly liquidations on an annual basis, the number of liquidations increased by 66.2%<\/strong>.<\/p>\n

\"\"<\/a><\/p>\n

The below table highlights the business categories which reported the most liquidations for the first five months of 2021.<\/p>\n

Of all sectors, financing, insurance, real estate, business services (278 liquidations), trade, catering, and accommodation (187) and community services (58) were the hardest hit.<\/p>\n

\"\"<\/a><\/p>\n

This aligns with Statistics South Africa\u2019s Quarterly Employment Survey (QES)<\/a><\/strong> for Q1 2021, published this week, which shows that the country’s businesses and job market have been decimated by Covid-19 and associated locdkowns.<\/p>\n

Total household-surveyed employment decreased slightly in the first quarter of 2021 and was still 1.4 million below that of a year earlier.<\/p>\n

The number of unemployed persons remained almost unchanged at just over 7.2 million in the first quarter of 2021, while the number of discouraged work-seekers increased significantly.<\/p>\n

In addition, the \u2018other not economically active\u2019 population increased notably as lockdown restrictions still impeded job-searching activity.<\/p>\n

As a result, the official unemployment rate increased marginally from 32.5% in the fourth quarter of 2020 to a new record high of 32.6% in the first quarter of 2021.<\/p>\n

The expanded unemployment rate, which includes the discouraged work seekers and those who did not search for work due to other reasons, increased from 42.6% to 43.2% over the same period.<\/p>\n

\n

Read: South Africa\u2019s jobs bloodbath continues \u2013 these are the workers most affected<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

Statistics South Africa has published its latest report on liquidations and insolvencies, pointing to a significant increase in liquidations since the start of the year.<\/p>\n","protected":false},"author":10,"featured_media":483331,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9872],"tags":[26,5769],"class_list":["post-502325","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-headline","tag-statssa"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/502325","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=502325"}],"version-history":[{"count":7,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/502325\/revisions"}],"predecessor-version":[{"id":503013,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/502325\/revisions\/503013"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/483331"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=502325"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=502325"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=502325"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}