MAMOKETE LIJANE: Trained professionals ride out crises, the unskilled go under
Lack of dynamism and the inability to absorb labour mean growth creates greater inequality
Debates about jobless growth, especially with reference to the enduring unemployment in the economic boom of the late 2000s, are emblematic of the political economy’s discomfort with SA’s economic growth appearing to deepen inequality. The Covid-19 crisis has further exposed this and made it worse. It poses a profound problem for the country’s politics.
When the world went into economic crisis in 2020, the domestic economy collapsed in line with economies everywhere else. Unemployment jumped in the lower productivity services. This sector is the largest employer of unskilled labour in the country. At last count employment remained well below precrisis levels. Labour absorption will have increased now that we have the worst of the Covid-19 crisis in the rear-view mirror. However, low-skilled people have been the hardest hit by the pandemic...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.