Lockdown relaxation ‘far too late’ to save jobs

Industry bodies have rejoiced at government buckling to pressure to allow international travel and lift restrictions on liquor sales as announced by President Cyril Ramaphosa on Wednesday evening. But according to economist Phillip Burger, this eleventh-hour save may be far too late for thousands who have lost their jobs with employers who may well have already shut their doors.

“It appears to be due to the pressure from these industries and the deteriorating state of the economy, which is not recovering as fast as some of us may hope. But it will remain to be seen how these sectors pick up,” said Burger.

These two industries were among the hardest-hit by the restrictions of the lockdown and constituted a large proportion of the 2.2 million job losses in the country over the lockdown period, which increased to 6.5 million in the third quarter, a 17-year record for unemployment.

According to Carla da Silva, director of Air Mauritius South Africa and chairperson of Board of Airline Representatives of South Africa, this was a positive sign for the industry.

“We understand the heavy financial toll this pandemic is taking on businesses and the global economy. We’re encouraged by the solidarity and generosity of the industry, [which] has used [its] resources, experience and networks to ensure that all the necessary protocols and measures are in place to ensure that aviation can take off again,” said Da Silva.

“The positive news will enable this important sector to reignite and play its important role in the growth and development of the South African economy and much-needed jobs… Aviation is a key economic enabler for our country.”

But Burger warned as far as international and even domestic travel was concerned, numbers may not reach normal levels quite so soon, as people remained afraid of travelling as uncertainty around an anticipated second wave of infection lingers.

“Not everyone is rushing to fly overseas or even travel for leisure just yet. We will just have to be patient but at the moment, I think things will improve, but not by much.”

Meanwhile, the Beer Association of South Africa (Basa) called on the booze industry to play its part in Covid-19 safety, as it prepared to return to full swing. Burger said this sector could see faster growth than travel and tourism industries, but it was too early to tell.

Over the past seven weeks, said Basa spokesperson Thabi Ndlovu, licensed outlets were allowed to sell alcohol for home consumption during weekdays from 9am to 5pm. This had a devastating impact on small businesses, including craft breweries which relied on off-consumption sales over weekends to keep their businesses afloat.

“As a result of continued lockdown restrictions, 15% of craft breweries have been forced to close down over the past few months,” she said.

“Many breweries that have managed to stay open have been forced to retrench staff, resulting in hundreds of job losses.”

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