The debilitating effect of the coronavirus pandemic on our economy was further illustrated this week when Statistics South Africa presented its latest employment figures, which showed unemployment improved in the second quarter, from 30.1% to 23.3%.
However, this is not the true picture of the situation on the ground, given that the economy crashed by half in the same period.
Stats SA explained the anomaly: “This sharp fall in the unemployment rate… is not a reflection of an improvement in the labour market, but rather the effect of the national lockdown, since the official definition of unemployment requires that people look for work and are available for work.
“In essence, the national lockdown hindered people from looking for work.”
During the period, 5.2 million more people joined the ranks of the “not economically active”.
If we needed any more reason, the dire figures show why it is important for the country to return to a semblance of the normalcy enjoyed before Covid-19.
Even then the economy was not necessarily humming, but people could move around freely and without fear of infection to seek employment.
Ending the lockdown will signal to the world that South Africa has defeated the virus and is again open for business. Ending the lockdown will enable all sectors of the economy to begin reopening at capacity.
In particular, the tourism and entertainment sectors, which were particularly hard hit by the lockdown, could begin resuming operations at margins that make economic sense, and we could perhaps start enjoying the thrill of live sport in person again.
The worst possible development in this scenario would be another outbreak of the virus – the muchfeared “second surge” that many other countries experienced after ending their lockdowns.
Our economy, in tatters as it stands, will be unlikely to weather the effects of a second lockdown. It is, therefore, in everyone’s best interests that we not drop our guard even at this reduced stage of lockdown restrictions.
Continue taking all the requisite precautions, even if those around you don’t, and we might yet recover from this plight.
The Star