Stats SASowetanLive reports that a leading economist has warned that SA's slip into technical recession could have a huge impact on jobs security.  

On Tuesday, Statistics SA reported that the country's economic growth for all of 2019 stood at 0.2%, its lowest reading since the global financial crisis in 2009.  The results meant that the country slipped into technical recession by recording two consecutive negative growth.  According to University of the Witwatersrand economics lecturer Lumkile Mondi, the economic downturn was caused by the construction and manufacturing sectors.  He noted that these were industries where each individual worker was responsible for feeding between five to 20 family members.  "Should the country continue experiencing economic downturns, these workers are likely to lose their jobs and their families will suffer," Mondi warned.  He added that economic downturns could also dampen investor confidence, making it difficult for government to carry out its functions to an extent that social wages and health services might be cut.  SA remains dogged by high and rising debt, low growth and soaring unemployment.  Weak agriculture output and transport were the main drags on growth in the last quarter, Stats SA said, followed by construction, mining and manufacturing, which outweighed positive contributions from finance and government spending.  Seven of the nation's 10 economic sectors contracted in the fourth quarter, Stats SA reported.


Get other news reports at the SA Labour News home page