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Government salaries will kill the economy

Business News 2 weeks ago

South Africa has too many civil servants and government is running out of money to pay them.


14 Sep 2020
PREMIUM!
Government salaries will kill the economy

Picture for illustration purposes. Picture: iStock

South Africa’s civil servants make up just 12% of its labour force, but earn a cool 30% of salaries, laments economist Mike Schussler. This follows news of the economy’s steady decline, despite the efforts to reopen the economy in a post lockdown Covid-19 reality. Statistics SA shows an estimated 1.5 million people have lost their jobs in the past five months of lockdown. Unemployment has risen to 30.1%, from a high of 27.7% in February. As government scrambles to revive its shrunken Gross Domestic Product (GDP) which lost 51% of its value year-on-year in the second quarter, Schussler argues that...

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