South Africa’s unemployement rate increases
South Africa sets a new record high with over 7 million people who are now officially unemployed.
The impact of the global COVID-19 pandemic has hit the country’s economy hard and as a result many industries are now forced to retrench workers and businesses are shutting down.
According Finance Minister, Tito Mboweni, the country has accumulated a lot of debts. Therefore, will have to reduce spending by introducing a zero based budgeting policy.
“As the pandemic progresses in the next coming months more jobs are being threatened, even with the government slowly easing restrictions for some sectors it might be too late,” added Mboweni.
Sifiso Hlatshwayo, a young entrepreneur from Lamontville township, south of Durban has been forced to come to terms with the daunting reality of closing down his spaza shop.
“The past three months have been the most difficult because my business took an unexpected U-turn that I honestly didn’t see coming. I’ve had to shut down my only source of income, I really had great plans growing it into a popular township supermarket one day,” said Hlatshwayo.
In the special adjustment budget, Minister of Finance, announced an unscheduled R500 billion economic stimulus including R100 billion social relief package for job creation