CAPE TOWN – The Covid-19 lockdown restrictions pushed practically 700 000 more individuals out of jobs in the second quarter, whereas slashing salaries for these which are employed.
Data from Statistics South Africa (StatsSA) yesterday confirmed that the restrictions devastated the financial system, inflicting many companies to completely shut their doorways or lower their workforce. StatsSA stated non-farm employment plummeted by 648000 through the quarter, with 541000 full time-employees shedding their jobs quarter-on-quarter.
The company stated part-time employment decreased by 107000 or -10.4percent through the quarter. It additionally stated gross earnings fell by a notable R82.2billion or -11.3percent quarter-on-quarter, with the enterprise providers and commerce sectors experiencing declines of -R25.3bn and -R18.4bn respectively. Investec economist Lara Hodes stated the monetary penalties of the pandemic exacerbated inequalities current in the nation. “Monetary and fiscal relief measures provided during this unprecedented time have helped to ease some of the burden on households,” Hodes stated.
“However, the accelerated implementation of reformative interventions is imperative to boost confidence and in turn stimulate growth and job creation.” StatsSA stated complete employment fell by 648000 or -6.4percent in the second quarter to 9.55million, in contrast with the primary.
Late final month StatsSA additionally launched its Quarterly Labour Force Survey, displaying 2.2million jobs had been misplaced in the quarter, because of the influence of the Covid-19 lockdowns on the financial system.
Yesterday President Cyril Ramaphosa introduced the nation’s financial recovery plan with a concentrate on infrastructure improvement programme, a R100bn employment stimulus programme, a localisation drive and industrial enlargement ought to help the creation of more than 800000 jobs in the immediate-term.
StatsSA stated its figures confirmed that the buying and selling sector was hit the toughest, shedding 192000 jobs in the quarter. It stated gross earnings fell by R64.1bn or -9 % year-on-year.
The Steel and Engineering Industries Federation of South Africa chief economist Michael Ade stated the weak QES figures in manufacturing employment had been anticipated and ran counter to the federal government’s financial recovery plan.
“The galloping unemployment scourge will, no doubt, have extended socio-economic consequences as the increasing number of unemployed expend their severance packages and unemployment stipends from the unemployment insurance fund,” he stated.