SA’S unemployment rate could reach 40% due to Covid-19 – Mogajane

4 May 2020

Some businesses have already shut their doors due to a month-long lockdown, which restricted economic activity across the country as the government tried to mitigate the spread of COVID-19.

JOHANNESBURG – National Treasury director general Dondo Mogajane on Monday said the country’s unemployment rate could reach 40% due to the impact of the coronavirus pandemic.

Some businesses have already shut their doors due to a month-long lockdown, which restricted economic activity across the country as the government tried to mitigate the spread of COVID-19.

Despite millions of South Africans returning to work on Monday, there was concern about whether the country’s economy would survive the effects of the pandemic.

Certain sectors including agriculture, forestry and fisheries, and other industries were permitted to operate under level 4 lockdown to keep businesses afloat.

Mogajane said there was a possibility that the country’s already battered economy would see a major contraction.

“…It may even reach 40% unemployment, if things go the way they are and it also depends on which sectors we are talking about,” he said.

Source: EWN at https://ewn.co.za/2020/05/04/sa-s-unemployment-rate-could-possibly-reach-40-due-to-covid-19-mogajane