Johannesburg – The Covid-19 lockdown restrictions pushed nearly 700 000 more people out of jobs in the second quarter, while slashing salaries for those that are employed.
According to data from Statistics South Africa (StatSA) yesterday showed that the restrictions devasted the economy, causing many businesses to permanently close their doors or decrease their workforce. StatsSA said non-farm employment plummeted by 648,000 during the quarter, with 541,000 full-time employees losing their jobs quarter on quarter.
The agency added that part-time employment decreased by 107,000 or -10.4% during the quarter. It also said that gross earning fell by R82.2 billion or -11.3% quarter on quarter, with the business services and trade sectors experiencing declines of -R25.3-billion and -R18.4-billion respectively.
Investec economist Lara Hodes said the consequences of the pandemic exacerbated inequalities present in the country. “Monetary and fiscal relief measures provided during this unprecedented time have helped to ease some of the burden on households,” Hodes said.
“However, the accelerated implementation of reformative interventions is imperative to boost confidence and in turn stimulate growth and job creation.” StatsSA said total employment fell by 648000 or -6.4percent in the second quarter to 9.55million, compared with the first.