A statistics agency in South Africa reported this week that the country’s unemployment rate had jumped to a record high. According to the agency, South Africans were suffering the effects because the COVID-19 pandemic battered the economy.
Statistics South Africa reveals Figures.
From the results of a survey that began in 2008, Statistics South Africa discovered the unemployment rate stood at 32.5% in South Africa. These results were obtained in the fourth quarter of October-December last year. According to analysts from the agency, the results revealed that 7.2 million South Africans were unemployed. The unemployment rate had increased from 30.8% in the previous three months to 42.6%. Due to this, the figure was the highest ever recorded in South Africa.
Statistician-General Maluleke working with Statistics South Africa told a news conference about the unemployment rate. According to Maluleke, his team discovered the proportion of working-age people versus the proportion of those already employed was widening. The agency team had to conclude that the results were like that because the job market was not creating sufficient jobs to absorb enough people.
The COVID-19 Pandemic Causes increase in the Unemployment Rate
Since last year South Africa has been the most affected country in Africa by the COVID-19 pandemic. The nation has recorded the highest rates of infections in the whole continent of Africa. Because of the surge in infections, the South African government worried that its healthcare system would become strained. Because of this, the government imposed a lockdown on the nation. The lockdown was intended to avoid the continued spreading of the coronavirus. People were still allowed to leave their homes during the lockdown, and anyone seeking medical care or buying food, or collecting social grants would be free to do so.
But all businesses and shops remained closed during the period of the lockdown. Only pharmacies, banks and laboratories, petrol stations, supermarkets, the Johannesburg Stock Exchange, and health workers were allowed to continue operation. Meanwhile, soldiers were deployed to patrol the streets in support of the police enforcing the lockdown.
Lockdown in South Africa
The government hoped to avoid the spread of coronavirus, especially in crowded townships and informal settlements. Most of these areas lack access to clean water, making it hard for hand-washing to happen, and applying self-quarantine practices in these areas is challenging. But the decision to have a complete lockdown in South Africa had a considerable impact on people’s livelihoods and the economy.
Because most businesses remain closed in South Africa, the country is suffering from extremely high unemployment levels. The number of unemployed people also includes those people discouraged from seeking work. Last year, these individuals who didn’t seek work because of the pandemic joined many others, creating a 42.6% increase in the unemployment rate. About 11.1 million people were unemployed, and many more didn’t even bother to seek work.
Compare to last year the total employment fell by 1.4 million people. Meanwhile, the number of people not economically active rose by 1.5 million people. This showed that the pandemic could be blamed for the current high unemployment rate in South Africa.
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