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Fin24 reports that according to a revised estimate by National Treasury, job losses could be between 690,000 and 1.79 million due to the impact of Covid-19 on the SA economy.
Initially on 30 April, Treasury had indicated that between three million and seven million job losses could be expected, which would have seen unemployment levels balloon to nearly 50%. In a revision, the Treasury has now indicated that 690,000 job losses were likely in the event of a quick recovery, while 1.79 million jobs could be lost in a worst-case scenario. A full time equivalent measure was used this time, to take into account businesses that might be making use of furloughs, among other measures, to mitigate the impact on jobs. Sectors mostly affected will be manufacturing, construction, trade, catering and accommodation and financial and business services. During the last global recession in 2008/09, SA lost one million jobs. Treasury has also projected an economic contraction of between 5.4% and 16.1%. Updated projections are expected to be presented at the tabling of the adjusted budget later this month. The Reserve Bank has projected a contraction of 7%, which would be the worst economic performance since the Great Depression in the 1930s.
- Read the full original of the report in the above regard by Lameez Omarjee at Fin24
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