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Editorial | Jobs must be priority number one

Twin shocks of economic contraction and Covid-19 reverb

Daily Maverick 168 weekly newspaper. Statistics South Africa will release the GDP data for the first quarter (Q1) of 2021, on 8 June. This release of the economy’s trajectory follows the 7% contraction of 2020 in the face of the once-in-a-century event, which is our current Covid-19 pandemic. According to the South African Reserve Bank, the contraction was also an event on the same time scale – the biggest decline in economic output in South Africa in a century. So there is scarcely anyone in South Africa alive who has experienced either catastrophe. The impact of these twin shocks has been nothing short of seismic, especially on the employment front, which is deeply worrying. South Africa’s economy is probably growing again, but this has not been accompanied by meaningful job creation, according to the latest data, which shows unemployment at record highs.

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Unemployment Stats Downplay SA s Jobs Crisis - IT News Africa - Up to date technology news, IT news, Digital news, Telecom news, Mobile news, Gadgets news, Analysis and Reports

Sourced from Voice of the Cape The Alternative Information and Development Centre (AIDC) and the Assembly of the Unemployed (AoU) note the results of the latest Quarterly Labour Force Survey (QLFS) with concern. The results of the survey show that unemployment in South Africa has reached some of the highest levels in the country’s history. It is the youth unemployment who make up the majority of the unemployed. The AIDC and the AoU believe that austerity policies by the government will only make the situation worse. The latest QLFS results show that the official unemployment rate increased to 32,6% – the highest rate on record. But while the official unemployment’s increase of 0.1% highlights the country’s growing job’s crisis, it is the expanded definition that shows us how bad the crisis is. In the first quarter of 2021, the country saw a rise in the expanded definition of unemployment by 0,6% to 43,2%.

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