- South Africa's unemployment rate has reached its worst level in 10 years and this is likely the most devastating effect of the coronavirus lockdown aside from the fatalities
- The unemployment rate has increased to 30.1%, meaning one third of all able workers in SA are without jobs
- Some people may be surprised to learn that the formal sector has reported more job losses than the informal sector
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Just as experts predicted, South Africa's unemployment rate has jumped to 30.1% in the first quarter.
This unemployment rate is now at its highest in 10 years. The number of employed people dropped by 38 000 between January and March.
Stats SA said on Tuesday that the number of unemployed people in South Africa had increased to 7.1 million in the first three months of the year, while the number of employed people decreased to 16.4 million.
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News24 reported that in the fourth quarter of 2019, the unemployment rate was 29.1% and has now jumped by 1%.
This rate is also expected to increase as South Africa continues to suffer economic damages due to the Covid-19 pandemic.
Briefly.co.za reported that seven million jobs may be on the line as the unemployment rate continues to soar.
According to data from Trading Economics, the last time the unemployment was above 30% was in the third quarter of 2002 when it reached 30.4%.
While the lockdown instituted on 26 March to slow the spread of the Covid-19 virus resulted in restricted in economic activity, the statistics for the first quarter only cover the first three months of the year.
The Independent Online has reported that the Commission for Conciliation, Mediation and Arbitration (CCMA) received 28 000 complaints between 1 April and 27 May as companies began retrenching employees due to the dire economic situation.
Stats SA said the largest job losses were in the formal sector with declines noted in sectors such as finance, community and social services, agriculture, transport and manufacturing, among others.
In more positive news, Stats SA said the informal sector had surprisingly managed to increase employment.
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