Expect surge in job losses, warns KZN department
|Published
Unemployment. Unemployment.
Durban - THE unemployment rate is projected to surge to about 30% in South Africa overall, and 27% in KwaZulu-Natal, this year due to Covid-19.
The percentage will edge towards 50% in the tourism and manufacturing sectors, the KZN Economic Development, Tourism and Environmental Affairs department warned yesterday.
In his presentation at the "Workers Parliament", acting head of department Smiso Nkosi said it would take time for the economy to return to full employment equilibrium levels attained prior to the Covid-19 crisis.
“On the labour front, we are observing casualisation, immigrant utilisation, retrenchments and unfair dismissals. Estimates by several analysts on the impact of Covid-19 on the national economy vary from a contraction of 5.8% to about 10%, with the SA Reserve Bank projecting a 6.1% decline," Nkosi said.
“At the same time, due to the impact of Covid-19 on tourism-related and manufacturing sectors, the KZN economy is expected to shrink by about 8%. Unemployment is projected to surge to about 30% in SA and 27% in KZN this year, while real unemployment will edge towards 50%,” said Nkosi.
Regarding job losses, he said the clothing and textile, transport equipment, hotels and restaurants, construction, sales and car repairs were among many likely to bear the worst impact.
The Department of Labour and Employment said it had paid more than R11billion in UIF claims to date, and 25000 employers applying on behalf of their employees in KZN were paid. To date, R42million has been paid to 10000 domestic workers.
UIF department manager Sihle Mkhize said in processing the applications, additional measures had been taken to avoid fraudulent claims.