(3 minutes read)
· The South African economy will take three to four years to get over the pandemic blues, according to Absa, one of the largest banks in the country
· Absa’s economist noted that a few jobs were created in the South African economy in 2019
· However, 600 000 to 700 000 jobs were lost in the second quarter of 2020 and very few of those jobs have come back
The South African economy will take three to four years to get over the pandemic blues, according to Absa, one of the largest banks in the country.
Absa’s chief economist and head of research Jeff Gable said that it would take more time for the South African economy to bounce back to the levels of pre-pandemic since employment generation would be slower. He was speaking at a Ford SA industry update breakfast yesterday. The motor manufacturer donated R2.5 million to help fund the enhancement of the National Occupational Health Surveillance System (OHSS). The program implemented by the National Institute for Occupational Health (NIOH), monitors workers in the public and private sectors using data supplied by employers on Covid-19 infections in the workplace under the direction of the Department of Employment and Labour.
This data helps to identify industries and occupational groups at risk of infection and analyses the impact on industries and occupational groups. Absa’s economist noted that a few jobs were created in the South African economy in 2019. However, 600 000 to 700 000 jobs were lost in the second quarter of 2020 and very few of those jobs have come back. The hospitality, transport and construction sectors have contracted more than 20% than they were before the Covid-19 pandemic. It would take time for these sectors to bounce back. The low level of business and consumer confidence was a major concern and it would take more time to bounce back than expected. This will be compounded by infrastructural gaps the country is facing including slippages in the operation of Eskom.
