Record unemployment rate: South Africans pay a high price for ANC’s bad choices
29 September 2020
The DA notes with despair the announcement today by Statistics South Africa (StatsSA) that 2.2 million people lost their jobs in the 2nd quarter and that the expanded unemployment rate increased by 2.3% to an unprecedented 42% in the same quarter.
By its own admission, StatsSA points out that the decline in the official unemployment rate from 30.1% to 23.3% in the 2nd quarter is not a reflection of an improvement in the labour market but rather an effect of the lockdown, since the official definition of unemployment requires that people look for work and are available for work.
In real terms, unemployment did rise exponentially in South Africa as 'the national lockdown hindered people from looking for work'. This rise in unemployment is a classic case of the ANC government’s chickens coming home to roost. A decade of economic policy incoherence and uncertainty, exacerbated by the Covid-19 pandemic and the draconian lockdown that accompanied it, has exacted a heavy toll on already struggling South Africans.
The catastrophic impact of the strict lockdown on economic activity has already been reflected in the 2nd quarter GDP figures, which contracted by 51% on a quarter-on-quarter annualised basis.