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ECONOMIES
Digitization, Unemployment and the Future of Work in South Africa
South Africa’s Table Mountains
Words Oroni Tendera
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n less than a month, South Africa has witnessed a massive wave of rentrenchments, as companies across multiple sectors have announced job cuts running into almost 10,000. Some of these include network operator Telkom SA, Walmart-owned retailer Massmart,Arcelormittal, Africa’s biggest steel company, Pharmaceutical giant Aspen, and miner Samancor Chrome. Startupmagazine.co.ke Jan/Feb 2020
With a third of the country’s labour force made up of jobseekers – unemployment rates stood at a staggering 29 percent in 2019 with youths making up 75 percent of that – the current trend of job cuts will put even more strain on demand and economic growth. Also, going by expert opinions, the downsizing in January so far is likely to continue throughout the year.
The high rate of unemployment coupled with recent developments in South Africa, which is the region’s most industrialized economy, is reflective of a fragile economy as companies struggle to stay afloat. The worsening situation is further compounded by the fact that 35 percent of all jobs in South Africa – almost 5.7 million – are at risk of total digital automation within the next few years.
