SIFISO SKENJANA: Virus pandemic has paved the way for a social compact to tackle economic crisis
Partnerships between the government, business, labour, civil society and communities can help small businesses and retain jobs
It is becoming increasingly clear just how good “doing good” is for business. In his state of the nation address President Cyril Ramaphosa called for a new social compact to form durable and mutually beneficial partnerships between the government, business, labour, civil society and communities. And for the first time in a while they have come together to face the economic threat posed by the coronavirus pandemic.
SA has many low-skilled workers in an open economy, which makes them particularly vulnerable to being retrenched in periods of low domestic economic growth and high global technology advancement. As technology advances and the pace of the skills supply is unable to keep up we can expect to see a bigger wage premium for higher skills, which will worsen the existing challenge of skills and wage inequality.