The shockwaves from the possible loss of nearly 1-million formal jobs in Gauteng because of the lockdown will hit the country's economic growth and be felt by households in other provinces too, experts predict.
"Gauteng is a major support system for SA. If the people who lose their jobs are high-wage earners from big economic growth sectors, there will be a major impact on the GDP.""It has a negative effect on consumer-driven businesses.
Leoka said if the worst-case scenario for Gauteng proved accurate, it would mean that of the 7-million jobs that the Treasury fears will be lost nationwide, 35% would be from the province. Johane Dikgang of the University of Johannesburg's school of economics said the predictions were terrifying."These losses will have a ripple effect across the entire economy, with the tax base tanking and economic development slowing."
Dikgang said the coronavirus job massacre would be worse than in the 2008 global financial crisis"and far closer to that of the 1929 Great Depression". A quarter of the jobs would never be reinstated.
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