https://www.engineeringnews.co.za
Africa|Business|Construction|Engineering|Environment|Lifting|Logistics|Manufacturing|Seifsa|Services|Steel|Manufacturing
Africa|Business|Construction|Engineering|Environment|Lifting|Logistics|Manufacturing|Seifsa|Services|Steel|Manufacturing
africa|business|construction|engineering|environment|lifting|logistics|manufacturing|seifsa|services|steel|manufacturing-industry-term

Unemployment numbers reflect deepening negative impact of covid-19 lockdown, says SEIFSA

13th November 2020

By: Creamer Media Reporter

     

Font size: - +

This article has been supplied as a media statement and is not written by Creamer Media. It may be available only for a limited time on this website.

The Quarterly Labour Force Survey (QLFS) released today by Statistics South Africa (Stats SA) reflects the deepening negative impact of the national lockdown put in place to curb the COVID-19 pandemic, as well as the overall depressed economic environment across major economic sectors, the Steel and Engineering Industries Federation of Southern Africa (SEIFSA) said today.

The QLFS data shows that South Africa's unemployment rate rose to 30.8% in the third quarter of 2020, up from 23.3% in the previous period. It is the highest jobless rate since quarterly data became available in 2008 and comes amid the ongoing pandemic lockdown, which has contributed to the depressed economic environment.

The data indicates that the number of unemployed people rose by 2.2-million to 6.5-million when compared to the second quarter of 2020. Key to note are the yearly net job losses observed in trade (400,000), manufacturing (300,000), community and social services (298,000) and construction (259,000).

SEIFSA Chief Economist Chifipa Mhango expressed concern about the job-loss trend, which he said “demonstrates lack of business activity. He said it was important that job creation was as a consolidated effort by both the Government and the private sector in order to ensure economic recovery.

Mr Mhango said recent available data for the third quarter of 2020 suggests that the economic scenario remains bleak, following the record GDP contraction in the second quarter of 2020 due to the pandemic. He said although the drop in manufacturing output and retail sales had eased from the second quarter, largely reflecting the gradual lifting of restrictions, it was still relatively steep. The manufacturing Purchasing Managers’ Index (PMI) remained mired in contractionary territory in the quarter, as did business confidence, which weighed negatively on investment activity.

Mr Mhango noted that in recent months there were signs of improvement in overall business confidence levels, and that from an M&E industry perspective, the PMI’s return to expansionary territory for the first time in 18 months, coupled with a softening decline in manufacturing output, was encouraging news.

“We expect the South African economy to rebound in 2021 as economic activity gradually recovers amid further easing of the lockdown. However, as can be seen in several European countries and the UK, which are experiencing a second wave of the COVID-19 virus, South Africans will need to be cautious and adhere to hygiene and social distancing protocols in order to ensure that the virus remains suppressed if the current recovery is to be sustained,” he said.

“The contribution of the M&E sector to overall employment remains key for the South African economy. However, persistent challenges faced by businesses in the sector, such as high electricity costs as well as disruption in its supply, rising logistics costs and imports amid low capacity utilisation, are likely to weigh negatively on the industry, thus affecting job creation in the overall manufacturing sector. It is, therefore, important that engagements between the Government and the industry on the challenges continue constructively to deal with these challenges,” Mr Mhango concluded.

Edited by Creamer Media Reporter

Comments

Showroom

VEGA Controls SA (Pty) Ltd
VEGA Controls SA (Pty) Ltd

For over 60 years, VEGA has provided industry-leading products for the measurement of level, density, weight and pressure. As the inventor of the...

VISIT SHOWROOM 
Weir Minerals Africa and Middle East
Weir Minerals Africa and Middle East

Weir Minerals Europe, Middle East and Africa is a global supplier of excellent minerals solutions, including pumps, valves, hydrocyclones,...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.094 0.151s - 162pq - 2rq
Subscribe Now