There is little hope for the unemployed in South Africa
Johannesburg- Sunburst Africa–As we get to the end of 2020, unemployment continues to grow- dampening any hopes of finding a job for those who have never been employed in South Africa.
According to data released by Statistics South Africa (StatsSA) yesterday, the South African economy shed 2,2 million jobs in Q2 of 2020.
The September 2020 Quarterly Employment Statistics (QES) survey showed that an estimated 14, million, with job losses in the third quarter over 2,2 million. This is bad news for the unemployed for the following reasons:
Firstly, it is more difficult to find a job in South Africa especially if you have never worked. This is made worse by the fact that many companies are closing down, others reducing staff and many moving online due to Covid-19. This trend of reducing labour force might continue as companies continue to readjust due to Covid-19 in the long term. Manufacturing production has also performed so poorly in 2020 dashing any hopes of increased employment in the sector in the short term.
Secondly, the power crisis facing Eskom will compound the unemployment problem. The state owned power producer- Eskom is in multiple crisis including operational crisis, financial crisis and governance issues among others. This has reduced prospects of any expansion in various sectors of the economy as there will be no sufficient power to allow for such.
Thirdly the problem of demand and supply mismatch in the labour market continues to compound the unemployment problem. While there are many trained graduates- many of their skills are not what is required by industry. Enough of the bad news. If you are employed in the formal sector in South Africa- things have gotten better for you. Let’s look at why I say so.
According to StatsSA, gross earnings decreased between the quarters June 2020 and September 2020.
This indicates that things have gotten worse for the employed and the fall in inflation and oil prices leaves some cash in the hands of the employed to spend during this festive season.
However, there is little hope for the unemployed in South Africa as the economy continues to shrink and employers are reducing jobs. There is need for urgent rethink about where the jobs of 2021 will come from.
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