This archive report was first published on 23 June 2020.
South Africa's economy is reeling under the impact of the COVID-19 pandemic, with the country's jobless rate soaring to 30.1% in the first quarter of 2020, according to official data released on June 23, 2020.
The unemployment rate rose by one percentage point compared to the final three months of 2019, with 7.1 million people out of work. The formal sector was the hardest hit, with the majority of job losses occurring in this sector, StatsSA reported.
President Cyril Ramaphosa had warned of mass job losses and 'tough times' ahead as the country implemented strict anti-coronavirus measures, including a lockdown that began on March 27. The lockdown has had a devastating impact on the economy, with the central bank forecasting a 7% contraction in 2020.
As the country slowly begins to loosen the lockdown restrictions, companies are announcing plans to lay off staff, including the public broadcaster SABC. The South African Chamber of Commerce and Industry has warned that the unemployment rate could rise as high as 50% due to the pandemic.
President Ramaphosa said in his weekly newsletter, 'For a country such as ours, which was already facing an unemployment crisis and weak economic growth, difficult decisions and difficult days lie ahead.'
