Covid-19 severely impacts employment according to Stats SA

A STATISTICS South Africa (Stats SA) survey has revealed that 8.1 per cent of its respondents lost jobs or closed businesses as a consequence of the Covid-19 outbreak.

The survey, titled Wave 2, studied the impact of the Covid-19 pandemic on employment and income in South Africa.

Stats SA released the findings on Wednesday. The survey was conducted between 29 April and 6 May.

According to the report, almost nine in ten (89.5 per cent) respondents who were employed before the national lockdown remained employed during the lockdown.

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“The survey also found a decrease in the proportion of respondents who usually derive their income from salaries and wages, as well as from own businesses during the lockdown. On the other hand, the results indicated an increase in the proportion of those who derived their incomes from savings and investments (increasing from 4.8 per cent prior to the lockdown to 6.0 per cent during the lockdown), loans from friends, family and/or businesses (increasing from 1.7 per cent to 3.3 per cent), and claims from UIF (increasing from 0.3 per cent to 2.1per cent),” found the report.

The percentage of respondents who reported no income increased from 5.2 per cent before the lockdown to 15.4 per cent by the sixth week of the national lockdown, said Stats SA.

The survey further indicated that about a quarter of respondents (25.8 per cent) reported that their incomes decreased during the national lockdown, while over half (56.2 per cent) said that their income had stayed the same.

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“Approximately one-third of respondents (33.4 per cent) reported that Covid-19 and the national lockdown will have no impact on their ability to cover their financial obligations, while 18.7 per cent and 18.2 per cent of respondents indicated that it would have a major or moderate impact, respectively,” Stats SA said.

Most respondents who reported that their income reduced during the lockdown indicated that they reduced their spending during lockdown as a coping mechanism (74.9 per cent).

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